It’s been a bad few weeks for Cardano, and its price has taken quite the hit. At $2.0910, it is currently trading about 32% lower than we saw ADA reach an all-time high earlier this year. With a market capitalization of up $66 billion, ADA takes 4th place amongst cryptocurrencies worldwide. In this article, we present our Cardano Price Prediction for October.
Technical Analysis
September was not a great month for Cardano. It experienced a price drop from an all-time high of $3.0976 to a new low of $1.1960. However, the first week of October has given indication of a bright month.
September saw ADA price drop thanks to investors who bought into buy-the-news sell-the event rumors. This is an example of when people invest ahead of major announcements or events and then exit once those happen. As a result, they become less valuable than expected. In this case, the event was the Alonzo hard fork.
The Alonzo hard fork has allowed Cardano to start accepting intelligent contracts. This means that developers can now build decentralized applications (DAPPs) and DAOs on their blockchain, which will compete with those built-in other chains like Ethereum or Binance.
The Second reason why Cardano declined so significantly was due to an influx of regulation concerns within China. The government banned foreign companies from offering cryptocurrency services to Chinese citizens.
In order to escape China’s regulatory clutches, many cryptocurrency exchanges have retired their existing customers. Moreover, they have stopped accepting new users from the People’s Republic of China as well. There are also concerns on US securities commission probes into stablecoins that are closely tied to fiat currencies like USD or EURO.
Source: TradingView
Price breezed past the $1.80 level, which was previously significant resistance and even returned to this point as support! This is very bullish for Cardano because if they can make it back up there then we’ll likely see an all-time high hit in October 2021.
Cardano Price Prediction for October 2021
The Cardano price has been in a significant sell-off since the start of this year. It recently dipped below $2.4915, which was an all-time high before that. Moreover, it saw a movement towards another low like at least one more support level around there. The 25 days or 50-day moving averages made bearish crosses during these days as well.
The Relative Strength Index (RSI) is a popular indicator for measuring the strength of buying and selling pressures in an economy. RSI formed a bearish divergence pattern. At this time, it seems that ADA may be developing into what’s known as “the handle section” or lower edge on its cup-and-handle formation. That is to say, the prices could continue to stay under pressure until October when they will finally break out again.