Cardano (ADA) Price Risks Breakdown Despite 2024 Summit Buzz

Key Takeaways

• The Cardano Summit 2024 will end today, on Oct. 24.
• Cardano (ADA) trades inside an ascending parallel channel.
• Will ADA break down from the channel, or is a bounce due?

The ADA price has fallen since its yearly high in March. While it started a bounce on Aug. 5, the increase is contained inside a corrective pattern. The ADA price now risks a breakdown from this pattern.

As ADA approaches critical support, the question is whether the price will break down.

On the other hand, the ongoing Cardano Summit 2024 can provide a buzz and cause a bounce. Let’s analyze the price action and see which is more likely.

Cardano Summit

The Cardano Summit 2024  will be held  on Oct. 23 and 24. Several prominent speakers will attend the event, such as Binance’s CEO, Richard Teng, and VeChain’s CEO, Sunny Lu.

Cardano CEO Frederik Gregaard started the first day of the Summit, giving a glimpse of what the future will look like with blockchain

In other Cardano news, founder Charles Hoskinson made a bold statement: He  believes that Cardano can run a full nation-state with tens of millions of people by 2030.

Will Cardano Price Break Down?

The ADA analysis from the daily time frame is bearish. Since the bounce on Aug. 5, the ADA price has increased alongside an ascending parallel channel. The channel is considered a bearish pattern, meaning an eventual breakdown from it is the most likely scenario.

The price action inside the channel is also bearish. On Sept. 27 (black circle), ADA failed to reach the channel’s resistance trend line before reversing.

It trades in the channel’s lower portion, making a breakdown more likely.

Today, on Oct. 24, the ADA price risks a breakdown from the ascending parallel channel. The channel’s support trend line also coincides with the $0.342 horizontal support area.

So, a breakdown below can greatly accelerate the downward movement.

Technical indicators are also bearish. The Relative Strength Index (RSI) fell below 50 while the Moving Average Convergence/Divergence (MACD) made a bearish cross (black icon) and is below 0, both signs of a bearish trend.

Next Support at $0.25

The weekly chart aligns with the bearish readings from the daily one. It shows that ADA trades inside a long-term range between $0.25 and $0.45. It has fallen below the range’s midline (white) and risks creating a bearish engulfing candlestick.

Furthermore, the weekly RSI is below 50, another sign of a bearish trend.

So, the most likely future outlook is a breakdown from the short-term channel and a decline toward the long-term support at $0.25.

ADA’s Bearish Trend

Despite the buzz surrounding the Cardano Summit 2024, the ADA price trend is likely still bearish.

A breakdown from the ascending parallel channel can trigger a decline to $0.25.