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Bitcoin price dropped to $41,300, causing legitimate concern among investors about further losses. Despite the approval of an ETF, such a drop is not surprising as we have seen similar surprises in the history of cryptocurrencies. What are the predictions for ADA Coin, one of the largest altcoins?
Cardano (ADA)
Since last June, ADA Coin’s price began to recover within a rising parallel channel. This trend represents BlackRock‘s entry into cryptocurrency and was the biggest event fueling market optimism despite SEC lawsuits. Ultimately, this was what led BTC to reach the $49,000 mark days ago.
After several unsuccessful breakout attempts, ADA’s price finally broke through the channel’s resistance line in December. Those were frustrating days because while the general market saw significant recovery, ADA Coin could not. This breakout had opened the door to the 2023 peak of $0.68 on December 14th. Subsequent charts with two long upper wicks clearly feel the dominance of profit-taking.
The daily RSI is on a downward trend, and there is a risk of BTC price dropping below $40,000 in the coming hours. This could happen as Asian markets open, especially when volumes are weak, entering the weekend with such a scenario could lead to worrisome outcomes.
ADA Coin Price Target
Readings on shorter-term charts like the daily graph do not support hopes for a rise either. ADA trading within a decreasing parallel channel since December 14th is concerning due to the formation typically leading to downward movements.
Although the price bounced off the support line on January 8th, confirming $0.46, it continues the day with a 4% loss at $0.50. Bulls that could not break out of the channel on January 11th and were rejected while BTC was climbing are now below the middle line of the channel, with RSI indicating a move towards support.
A possible upward breakout from the 35-day formation could initiate a move towards the $0.7 peak. However, a downward break from the channel could target the support area at $0.37, despite the 30% rise prediction.
BTC has broken down the rising parallel channel, and as expressed today, the cumulative value of cryptocurrencies faces the risk of easing to $1.4 trillion. This is the worst-case scenario for ADA Coin as well.
