Amid the broader market correction, with the Bitcoin price crashing under the $54,000 mark, the altcoins, including Cardano, take another bearish hit. As BTC price crumbled 3.77% , any bearish continuation may further knock it down.
Amid the downfall, the crypto market stands at $1.908T, and the 24-hour liquidations surge to almost $100 million. Will Cardano survive the bear run in September for a bullish restart?
Intense Bearish Influence Over Cardano’s Channel
In the daily chart, the Cardano price showcases a falling channel pattern in motion. The declining trend from the 52-week high of 0.810 accounts for a price drop of 59.72% to the current market price of $0.325.
Source: Trading View
However, the Cardano price has recently found solid support at $0.32 and teases a double-bottom reversal. In the falling channel pattern, the resistance trendline provides four bear cycles, and the support trendline, with a similar intensity, has led to multiple bull cycles.
Furthermore, the double bottom pattern finds the support of bullish divergence in the daily RSI line. From the previous bottom formation at 26.20 in the oversold zone, the RSI is currently maintained at 39.19, revealing a massive divergence of almost 13 units.
Also read: Cardano Price Prediction
Cardano Network Traffic Cuts in Half
At the start of 2024, the Cardano network had roughly 95,000+ daily transactions. However, at current times, it is registering nearly 33,000 transactions. Hence, the transactions have been cut to one-third this year, and the declining trend continues.
As the number of transactions has dropped, the volume of transactions over the network has also declined as per Intotheblock.
Transactions volume on the Cardano network stood at 29.21 billion ADA tokens in early 2024. However, in the ongoing bearish phase, the Cardano network’s transaction volume has dropped to 14.4 billion ADA tokens, less than half.
Hence, the declining network health of Cardano visibly impacts the ADA token price. Nevertheless, on the optimistic side, the recent release of the CIP-1964 upgrade, truly decentralizing the network, hopes to propel the ADA token price in the next bull run.
Will Cardano Hold $0.30?
The bull cycle within the falling channel will find resistance at the 50-day EMA at $0.361, the overhead trend line near $0.364, and the 200-day EMA at $0.425. Conversely, the support under the $0.32 remains at the $0.30 psychological mark and $0.276.
In conclusion, despite the recovery facing potential hurdles in September, a bullish breakout of the falling channel is possible in the October rally. In such a case, the Cardano price can be boosted to hit the 50% Fibonacci mark at $0.544.