Cardano (ADA) Technical Analysis: Bulls Under Pressure At Resistance, Looking Bearish Over the Short-Term

Cardano is one of the worst-affected cryptocurrencies in the top ten today, suffering a 7.96% loss against BTC amid the latest red market. Earlier today, news that a Mt Gox Trustee has dumped a further $230 million worth of BCH and BTC surfaced and appears to be one of the main reasons for the current downturn. This has come at a terrible time for Cardano, as the news comes just days after ADA banked a healthy 40% before the weekend.

With crypto traders left shaken and uncertain of where the market will go now over the rest of the week, will ADA continue to slide or will the new roadmap announcement in nine-days time keep bullish sentiment alive? Let’s take a look.

Diving into the ADA/BTC chart over 4hr candles, we can see that Cardano is still tracking nicely inside a bullish falling wedge pattern, with the recent price activity pushing ADA back towards the downtrending resistance that has held the asset down since May. As a result of the recent FUD that has been spreading throughout the market, ADA was unable to test this level for a third time and consequently broke bearish as short-term momentum dwindled.

Looking at a number of indicators over 2hr candles it is looking like ADA will continue to struggle against strong selling pressure until the market stabilizes;

For the rest of this week, ADA will be relying heavily on the BTC market to improve in the hopes of elevating the altcoin market with it. The Cardano roadmap announcement due on October 4 may ignite some bullish interest later on, but so far, many of the developments have largely been new project proposals and minor updates. Hodl’ers will no doubt be praying for some big news to arrive soon to provide some much-needed market stimulation and to break free of the long-standing wedge pattern.

Cardano (ADA) Price Targets

All price targets are set from the 0.5 fib level at 1,178 Sats where ADA is currently valued.

Price Target 1: Bearish continuation down to the 0.236 fib level at 1,068 Sats (-9.37%). You can clearly see that this area was a key resistance for ADA 10 days ago, where the asset tested this level around three times unsuccessfully before finally breaking through.

Price Target 2: After finding the 0.236 Fibonacci support, it is likely that we’ll see ADA recover back to the 0.382 fib level above at 1,129 Sats (-4.17%) where we could see the asset oscillate sideways and retest the main pattern resistance again over the week.