- Cardano plunged to $2.08 amid symmetrical triangle breakout.
- ADA/USD was closed at $1.9830 after placing a high of $2.2239 and a low of $1.9132.
- Forex trading participants may look for a sell trade below the $2.28 level to the target of $1.9191 and $1.6869.
ADA/USD was closed at $1.9830 after placing a high of $2.2239 and a low of $1.9132. ADA/USD fell for the third consecutive session on Tuesday, reaching its lowest level since August 18th during the recent market crash. The Cardano network launched its long-awaited smart contract functionality through the Alonzo hard fork. Cardano plunged to $2.08 amid symmetrical triangle breakout.
Many thought that it would result in some bullish price action. However, the ADA token faced price pressures and dropped by 10% following the rollout. Cardano celebrated the milestone, emphasised that these were still the early days of the project, and urged the community not to be overzealous and hyped but to remain patient with the functionality of the smart contract as it was in its formative stage. This advice from Cardano developers and the recent market crash added further losses in ADA/USD on Tuesday.
The whole crypto market came under pressure after joining the global stock market crash prompted by the potential collapse of Chinese real estate giant Evergrande. China’s biggest real estate company reported that it would not repay its debt due in September as its cash flows and liquidity have been affected this month due to a significant decline in contract sales.
The Evergrande debt crisis led to the crypto market sell-off.
The company has debts amounting to $300 billion, making it the world’s largest indebted real estate company. As the company’s potential collapse could hurt the whole world’s economy, the global financial markets came under pressure, including the crypto market.
Bing is the largest company in China. Its collapse would hurt the image of Beijing and result in industrial disruptions throughout the world. That’s because China has partnerships with over 100 countries around the world. In simple words, the demand for Chinese products and services would decline in the international market. Therefore, the global stock market crashed following this news.
This Evergrande debt crisis led the crypto market towards a sell-off and dragged the biggest currencies in the market along with them. The ADA/USD followed in the footsteps of the major currencies and fell on Tuesday to a multi-week low.
Cardano Price Prediction – Technical Levels
Pivot Point: 2.0400
Cardano plunged to $2.08 amid symmetrical triangle breakout.
Cardano’s price prediction is bearish below the 50- days EMA level of 2.2150 level. The closing of candles below this area suggests a selling bias in the ADA/USD pair. On the bearish side, the ADA/USD pair may find immediate support at the 1.9191 level, and a breakout below this level may help us capture a sell trade until the 1.6869 level.
On the bullish side, the ADA/USD may find an immediate resistance at the 2.2179 level, and a bullish breakout of this level may extend a buying trend until 2.39 and 2.59 levels.
The closing of candles below the 50 days EMA (Exponential Moving Average – Red Line) supports a selling trend in ADA/USD. Besides, the ADA/USD’s Stochastic RSI indicator has entered the overbought zone, suggesting possibilities of a bearish correction in the pair. Consequently, the investor’s focus will stay on the $2.28 level, as below this; the ADA may display a bearish bias and vice versa.
Forex trading participants may look for a sell trade below the $2.28 level to the target of $1.9191 and $1.6869. Alternatively, we may see buying trades above the $2.25 level. All the best.
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