Cardano Price Faces 17% Drop Ahead of Hoskinson’s Roadmap Reveal

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Cardano price is facing potential volatility ahead of Charles Hoskinson’s upcoming roadmap reveal at the Buenos Aires Cardano Summit. The asset had a good run last week but shed value over the weekend, abandoning a potential breakout and dropping out of the top 10 ranks once more.

Can Charles Hoskinson’s Post-Voltaire Roadmap Boost Cardano Price?

Cardano founder Charles Hoskinson shared on his Twitter account that he was planning on missing the Foundation Summit in Dubai to attend the Buenos Aires Cardano Summit in Argentina.

Just to remind everyone, I will not be in Dubai for the Foundation Summit. I will be in Argentina for the Buenos Aires Cardano Summit and also at https://t.co/XbW2nOls2j
Keynoting alongside President Milei.

I'll present on the future of Cardano. It will be livestreamed for… https://t.co/czI8LTrh2h

— Charles Hoskinson (@IOHK_Charles) September 29, 2024

Hoskinson was invited as a keynote speaker at TechForum Argentina on October 19. He said he would harness the opportunity and platform to present the future of Cardano—the roadmap after Voltaire. Hoskinson was particularly excited to attend this event as he would be sharing the platform with Argentina’s pro-Bitcoin president, Havier Milei.

Such announcements are usually bullish catalysts for crypto assets but not for ADA. The ADA price has dropped 2.1% in the last 24 hours and is trading at $0.3853.

In addition, the asset has abandoned the previously anticipated breakout from a falling channel and is currently headed down. This selling pressure is likely to continue in the short term, as the Coinglass ADA liquidation map shows that Shorts have overwhelmed Longs.

ADA liquidation map

With 9.16 million in shorts and 4.35 million in longs, the Cardano price is likely to succumb to sellers’ pressure until it reaches a zone of strong support.

According to the Cardano daily timeframe chart, this zone lies 18% below the current price, around $0.31.

ADA Price Analysis: Cardano Targets $0.31

Traders and investors are closely monitoring the strong support zone, approximately 18% below the current price, around $0.31. This level has become critical as the overhead resistance has thickened due to recent price rejections. From the Coinglass chart above, most shorts are between $0.388 and $0.4, making it challenging for ADA to break through this range.

Additionally, this zone coincides with the 200-day exponential moving average (EMA), which further reinforces this zone as a strong resistance.

On the flip side, the Cardano price may find temporary support near $0.36 because this price level coincides with the 50-day EMA. If this indicator supports the price, the Cardano price may bounce and test 200-day EMA resistance for a second time.

If the 50-day EMA fails to hold the price up, Cardano may drop lower to $0.31, an 18% drop from the current price. Also, if the price bounces off the 50-day EMA but fails to break the 200-day EMA, it may end up forming a double-top bearish reversal pattern that is a strong indicator of down price movement. This may send the ADA price lower to $0.25, near the bottom boundary of the channel.

Frequently Asked Questions (FAQs)

Typically, such announcements can serve as bullish catalysts for cryptocurrency prices. However, the current market sentiment surrounding Cardano (ADA) price seems to be bearish, with significant selling pressure influencing the price negatively.

The overhead resistance is thickened around the $0.388 to $0.4 range, coinciding with the 200-day exponential moving average (EMA). If ADA's price fails to break through this resistance after a bounce off the 50-day EMA at around $0.36, it could lead to a bearish double-top pattern.

Hoskinson expressed enthusiasm for attending the Buenos Aires Cardano Summit, as it provides an opportunity to present the future roadmap of Cardano and share the stage with Argentina’s pro-Bitcoin president, Javier Milei. This decision highlights the significance of the Buenos Aires event in relation to Cardano's future plans.

Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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