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The Goguen era of Cardano is in full swing, with Alonzo set to bring smart contracts to the network. In fact, some people now consider this altcoin as a possible forerunner for the digital economy’s future. On the contrary, some people continue to believe it is a ghost chain and are bearish on it. As a result, the question arises: Will these feelings have an impact on ADA’s stock price? And, if that’s the case, how much lower can the coin go? Dan Gambardello of Crypto Capital Venture highlighted the next important levels for ADA.
Is Cardano on a downtrend?
The answer is affirmative, based on ADA’s price movement since its ATH in April and May, and the subsequent sharp decrease. According to the analyst, Cardano has been on a multi-month slump. In fact, looking at the 6-hour chart showed how rapidly and dramatically ADA dropped from Point 1 ATH to Point 2.
This resulted in the formation of a downward triangle, inside which Cardano continues to consolidate. Furthermore, the Fibonacci tool revealed that many resistances for ADA were produced by a series of swing highs and swing lows.
The orange zones on the chart represent significant resistance levels for short- and long-term ADA movements. These price resistance levels range from $1.4 to $2.2.
Cardano has also been moving marginally near its support level on the long-term weekly chart. ADA had previously tested this support, but it now appears to be on its way to a greater possible downside. Between $0.55 and $0.94, this support range can be discovered.
Surprisingly, some individuals have begun to refer to Cardano as a “stablecoin” due to its low volatility and restricted fluctuation around the $1 mark.
Why are people unsure about Cardano?
The market has been exhibiting mixed sentiments about the second-gen cryptocurrency now more than ever. Data on a recently opened prediction market on Polymarket brought forth some interesting findings too.
Despite the high level of developer engagement, attendees were unsure whether Cardano would enable smart contracts on October 1st as planned, with odds of 60-40 against it at the time of writing. It may be noted here that IOHK CEO Charles Hoskinson had mentioned that by October, smart contracts will be active on Cardano’s mainnet.
Thus, investors should consider all of these factors before making an investment decision because as the analyst pointed out,
“Be very careful out there because it is very much up in the air. Markets are very indecisive.”