Cardano price dropped to a crucial support level, continuing a downward trend that started in August when it was trading at $1.01.
Summary
- Cardano price dropped to a crucial support level.
- The NIGHT token demand continues to grow, with its 4-hour volume reaching $1.7 billion.
- Cardano is working on the Pentad proposal that will address key issues.
Cardano (ADA) token dropped to a low of $0.3836, bringing its market capitalization to $13.8 billion.
The token dropped despite having some important bullish catalysts, including the ongoing growth of Midnight (NIGHT), the recently launched security-focused network.
Data compiled by CMC shows that NIGHT is seeing strong demand from investors. Its 24-hour volume jumped by 23% to $1.69 billion, making it one of the most traded assets in the crypto industry. Its market capitalization has jumped to over $1.1 billion.
Cardano hopes that Midnight will become a major player in the security industry, where it will be able to handle sensitive data with a dual-state architecture. This means that it will separate public and private data, while still allowing controlled disclosures to auditors.
Cardano price has also dropped despite having some notable events, including the recently announced partnership with Pyth Network, the fifth biggest oracle network.
This partnership means that it will now be possible for Cardano to attract developers as they now have access to quality off-chain data.
Most importantly, the integration is part of a recently announced Pentad proposal that will see key organs in Cardano spend 70 million ADA tokens in 2026.
In addition to adding quality oracle networks to Cardano, Pentad also hopes to bring quality stablecoins, custody solutions, cross-chain bridges, and on-chain analytics projects onboard.
Cardano price technical analysis points to an eventual rebound
The daily timeframe chart shows that ADA price has been in a downward trend in the past few months, moving from the year-to-date high of $1.0150 in August to the current $0.40.
The token has already moved below the lower side of the inverted cup-and-handle pattern at $0.51130. It also remains below the 50-day and 100-day Exponential Moving Averages.
However, there are signs that the token has bottomed. It has formed a small double-bottom pattern at $0.3780 and a neckline at $0.4800. A double-bottom is one of the most common bullish reversal signs in technical analysis.
Also, the token has formed a bullish divergence pattern as the MACD and the Relative Strength Index have continued moving upwards. Therefore, a rebound may see the token rally to the key resistance level at $0.50. A drop below that support will point to more downside.
