Cardano price is on track to drop for the sixth consecutive week as the crypto market crash continued. ADA trades at $0.60 today, June 20, its lowest point since April 25, and 55% below the highest point this year.
Technicals point to a further 30% crash as its decentralized finance (DeFi) growth reverses and as Charles Hoskinson laments about the ongoing Chainlink integration.
Cardano Price Eyes a 30% Crash if it Loses Key Support
The weekly timeframe shows that Cardano price peaked at $1.315 in December as the crypto rally accelerated. It then reversed even as Bitcoin surged to a record high.
ADA price has plunged below the 50-week Exponential Moving Average (EMA) as it dropped for six consecutive weeks. At the same time, oscillators like the Commodity Channel Index (CCI) and the Percentage Price Oscillator (PPO) have pointed downwards, confirming the downtrend.
Cardano is slowly forming a giant rising broadening wedge pattern, commonly known as the megaphone. This pattern comprises of two ascending and diverging trendlines.
In this case, the upper side connects the higher highs since January 2023, while the lower side links the lower lows since September 2023. In most cases, an asset often retests the lower side of the channel several times and then blasts upwards.
In this case, a drop below the key support level at $0.516 will confirm the bearish view. This is an important level since it was the lowest swing in February and April, making it a bullish double-bottom pattern.
A drop below that level will signal more downside to the lower side of the rising broadening wedge at $0.40, which is about 30% below the current level. It will then bounce back after dropping to that level, and potentially move to last year’s high of $1.315.
A drop below the lower side of the wedge will invalidate the bullish ADA price forecast. It will also open the possibility of the coin falling to the support at $0.273, the lowest swing on August 5.
Charles Hoskinson Laments About Chainlink Integration
A potential catalyst for the bearish Cardno forecast is the delayed Chainlink integration, which Charles Hoskinson has been pushing for since December last year.
In a video statement, Hoskinson said he was still unsure why Chainlink was not integrating his chain. He said:
“There seems to be two factions within Chainlink. There’s the leadership of Chainlink that I am friends with and know very well. And every time we talk, we say that we should do more together. Then there is the business side of Chainlink that say they would like to integrate, and it never goes anywhere.”
A Chainlink integration would be a big deal for Cardano because it is the biggest player in the oracle industry. Cardano would also benefit from the incorporation of the Cross-Chain Interoperability Protocol (CCIP), which will open it into other chains like Ethereum and Base.
Cardano price is also at risk as the total value locked (TVL) of its decentralized finance (DeFi) ecosystem plunges by 30% in the last 30 days to $330 million. Its stablecoin supply stands at just $30 million, much lower than most chains.
