The price of Bitcoin is staying below $29,500 as it rises due to the latest inflation data, which suggests that the price could drop to $28,300 in the coming hours. On the other hand, ADA Coin has once again lost its $0.3 support. So, what will happen in the coming days?
After facing rejection from its peak in July, Cardano (ADA) price is returning to its long-term range. The rejection became more apparent as the price moved away from the short-term rising support line, indicating that ADA price could experience further decline.
On the weekly chart, ADA Coin price has found buyers above the $0.25 support range since the beginning of the year. While ADA briefly fell below it in June, it formed a long lower wick, which is considered a sign of buying pressure.
ADA Coin reached a peak of $0.38 in July but failed to surpass this region. Since the rise was due to the Ripple summary decision, it was normal for it not to be sustainable. As more comments and explanations were made about the summary decision, ADA Coin and many other altcoins that received a securities stamp erased their gains from that period. Finally, the SEC announced its intention to appeal this decision earlier today.
Technical analysis on the 6-hour timeframe supports a bearish outlook. The bearish expectation, derived from Elliott wave count, indicates a corrective A-B-C structure. This bearish outlook was confirmed when ADA price dropped below the short-term rising support line on July 31, indicating that the previous rally had clearly ended.
If the ADA price continues to decline, its losses could reach 17%. In this scenario, a retracement to the $0.25 horizontal support area is likely. However, if the price regains momentum, it could increase by 8%. This requires the recovery of the rising support line.
Recovering the rising support line will invalidate this bearish outlook. In that case, ADA price could reach the next resistance at $0.38.
Hoskinson’s failure news, along with the inability to attract enough developers to the network, was the most devastating blow for the popular altcoin following the last SEC hit.