Key Takeaways:
- Cardano (ADA) faces a 70% drop based on bearish technicals.
- Dependence on Bitcoin could boost ADA, if the flagship crypto pulls off a rally.
- FTX chief Sam Bankman Fried confirmed the exchange's intention to list ADA "soon."
YEREVAN (CoinChapter.com) – Cardano (ADA) traded at $0.4 in the European session on Nov 4 after week-long sidewalls consolidation. In detail, the digital asset repeatedly retested a significant support line as resistance and hinted at more pain ahead due to a bearish formation.
ADA in a descending triangle
Like many other altcoins, ADA formed a pattern dubbed the ‘descending triangle.’ The latter entails a dropping resistance line and flat support, which enclose the price action and incrementally lower the price swing. When the token exhausts the formation, it will likely break below the support.
Moreover, the expected decline could equal the drop preceding the formation, which pins ADA’s target price at approximately $0.11, or 70% lower than the current value. The Cardano token confirmed the descending triangle on Oct 10, sliding below the support.
Also read: Cardano on-chain indicator forecasts 200% growth for ADA prices.
However, the buying pressure was insufficient to break the resistance at $0.42, and the declining trading volumes testified to the bearish expectations.
Furthermore, ADA price action charted in a Bitcoin-copycat manner for the previous two quarters. Thus, if Bitcoin rallies, the Cardano token will likely follow, which is also true for a bearish scenario.
Meanwhile, a new listing might pump ADA, helping to overcome the abovementioned resistance.
FTX to list Cardano token
Cardano conducted the ADA initial coin offering (ICO) in several stages, the last of which took place in Jan 2017. Since then, most major exchanges have listed the Cardano token. However, FTX did not jump on the bandwagon.
Thus, Cardano community members have addressed FTX chief executive Sam Bankman Fried, implying that the CEO sees ADA as a possible ‘threat.’
Bankman Fried replied to the inquiry, hinting at an upcoming Cardano(ADA) listing. He referred to the token as “new” but added an explanation, noting that he merely meant “new to the FTX exchange.”
The promise to list Cardano (ADA) “soon” also met a backlash.
Clearly those that need to update you on current trends or great techs or whatsoever is outdating you… 5yrs and @SBF_FTX [Sam Bankman Fried] of @FTX_Official [FTX twitter handle] is still at “SOON” .. speaks volumes of how you handle your business brother.
commented a user from the ADA community.
A new listing on a major exchange can propel any digital asset’s value.
In short, a new listing raises the token’s accessibility and widens the trading community. However, a bullish ADA rally is not a given, even with an FTX listing. Additionally, as mentioned above, if the general crypto market goes south following a Bitcoin drop, Cardano is likely to follow.
