Cardano’s Midnight Testnet Fails to Move Holders, ADA Eyes 21% Decline

Source Beincrypto

The long-awaited testnet for Cardano’s privacy protocol, Midnight Network, has finally gone live. However, it has failed to reignite interest in the blockchain’s native coin, which continues its downward trend.

This analysis examines the coin’s technical setup, with signals suggesting that if selling pressure intensifies, Cardano’s price could plummet by an additional 21%.

Cardano Holders Ignore Midnight Testnet Launch

According to an October 1 blog post, Cardano’s Midnight sidechain allows developers to build functional applications while maintaining user privacy.

Announced in 2023, Midnight is Cardano’s Layer-1 (L1) privacy-focused solution. The recently launched testnet will focus on testing critical features to ensure a stable environment for developers as they explore the protocol.

Despite this progress, Cardano’s price has not reflected the development. The altcoin is trading at $0.34, marking an 11% drop since October 1. On its one-day chart, Cardano remains in a horizontal channel, repeatedly facing strong selling pressure at the $0.40 resistance level despite attempts to break out.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

ADA Horizontal ChannelCardano Horizontal Channel. Source: TradingView

On September 27, ADA made another attempt to break out, but strong resistance from bears triggered a downward trend. The coin’s price is now approaching the channel’s support at $0.31, with indicators suggesting that this level may not hold.

At its current price, ADA risks falling below the Ichimoku Cloud, which it briefly tried to flip into a support floor during its rise between September 24 and 27. However, with declining buying pressure, the cloud may fail to act as support.

The Ichimoku Cloud, a tool used to gauge market trends, momentum, and support/resistance levels, signals a bearish phase when an asset’s price falls below it. In this case, the cloud has shifted to a resistance zone, making it harder for ADA to climb back without a strong resurgence in buying pressure.

ADA Ichimoku CloudCardano Ichimoku Cloud. Source: TradingView

ADA Price Prediction: Bulls Must Defend This Support

The growing bearish sentiment in the broader cryptocurrency market casts doubt on any near-term resurgence in ADA’s buying pressure. This negative outlook is reinforced by its Elder-Ray Index reading of -0.04, indicating that bear power currently dominates the market.

If ADA fails to find support from its Ichimoku Cloud, the altcoin will likely approach the lower support line of its horizontal channel. A failure by bulls to defend this level could push Cardano’s price down to $0.27, a 21% drop from its current value.

Read more: Cardano (ADA) Price Prediction 2024/2025/2030

Cardano Price AnalysisCardano Price Analysis. Source: TradingView

On the other hand, if buying pressure resurfaces, ADA could rise above the cloud and aim for the channel’s $0.40 resistance. A successful breakout here might set the stage for a climb toward $0.60.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin volatility drops to third-lowest level since 2012 amid rise in BTC treasury companiesBitcoin (BTC) trades above $108,000 on Tuesday following a steady decline in its volatility in the first half of the year, marking the third-lowest H1 volatility since 2012.
Author  FXStreet
Yesterday 02: 11
Bitcoin (BTC) trades above $108,000 on Tuesday following a steady decline in its volatility in the first half of the year, marking the third-lowest H1 volatility since 2012.
placeholder
AUD/NZD inches higher to near 1.0900 as RBNZ maintains Official Cash Rate at 3.25%AUD/NZD holds ground after the Reserve Bank of New Zealand (RBNZ) decided to stand pat on the policy rate after six consecutive cuts, trading around 1.0890 during the Asian hours on Wednesday.
Author  FXStreet
Yesterday 03: 03
AUD/NZD holds ground after the Reserve Bank of New Zealand (RBNZ) decided to stand pat on the policy rate after six consecutive cuts, trading around 1.0890 during the Asian hours on Wednesday.
placeholder
Ethereum Price Turns Positive — More Upside Likely if Momentum HoldsETH is now consolidating gains and might aim for a fresh move above $2,620.
Author  NewsBTC
Yesterday 03: 26
ETH is now consolidating gains and might aim for a fresh move above $2,620.
placeholder
Jeff Bezos sold nearly 3 million Amazon shares for $665.8 million in early JulyJeff Bezos has sold nearly three million shares of Amazon in the first two days of July, offloading a total of $665.8 million.
Author  Cryptopolitan
23 hours ago
Jeff Bezos has sold nearly three million shares of Amazon in the first two days of July, offloading a total of $665.8 million.
placeholder
Gold price slides further below $3,300, over one-week low amid a firmer USDGold price (XAU/USD) trades with a negative bias below the $3,300 mark during the Asian session on Wednesday and drops to a one-and-a-half-week low in the last week.
Author  FXStreet
21 hours ago
Gold price (XAU/USD) trades with a negative bias below the $3,300 mark during the Asian session on Wednesday and drops to a one-and-a-half-week low in the last week.
goTop
quote