Cardano price remains under pressure this week amid the ongoing crypto market sell-off. The ADA token was trading at $0.5250, its lowest level since June 22nd. It has formed an inverse cup-and-handle pattern, pointing to more downside in the coming weeks.
Cardano Price Forms Risky Patterns
The daily timeframe chart shows that the ADA price has been under pressure in the past few months, moving from a high of $1.025 in August to $0.5300 today.
The coin has formed a few risky patterns that may lead to more downside in the near term. For example, it formed a death cross pattern on October 20, when the 50-day and 200-day Exponential Moving Averages crossed.
The token is forming an inverse cup-and-handle pattern, characterized by a horizontal line and a rounded top. It is now near the horizontal line point.
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Cardano price has also fallen below the Supertrend indicator, while the Relative Strength Index (RSI) and Stochastic Oscillator have continued to decline.
Therefore, there is a risk that the token will continue falling in the coming days. This bearish outlook will be confirmed if it drops below the lower side of the cup.
Cardano Leios and Midnight Launches
Cardano’s price has crashed in line with the ongoing retreat of other cryptocurrencies, such as Solana and Bitcoin.
However, as we have written before, its internal factors have contributed to its weakness over time. For example, it is often called a ghost chain as it has no active ecosystem.
Now, Cardano is betting on Leios and Midnight to solve most of its challenges. Leios is an upcoming upgrade that will introduce the concept of parallel processing to accelerate its performance to about 11,000 transactions per second.
Leios will also expand smart contracts, preserve decentralization, and implement a concurrent block structure. While these are all important developments, it is unclear whether they will boost Cardano’s ecosystem.
Midnight, on the other hand, is an upcoming layer-2 network that will have everything that Cardano lacks. It will include Chainlink integration, providing price feeds and other data sources.
Midnight has inked tens of partnerships, has faster speeds than Cardano, and is more secure by focusing on zero-knowledge proofs in its architecture.. As such, Cardano’s team, including Charles Hoskinson, hopes that Midnight will bring billions of dollars in TVL and stablecoin supply to its ecosystem.
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