Cardano gets listed on Robinhood but ADA bulls are running out of steam, risking 40% drop

ThCardano (ADA) market has witnessed back-to-back items of excellent information since Aug. 31, from its listing on Robinhood, a U.S.-based retail funding platform, to the release of its first lending and borrowing protocol, Aada Finance.

Moreover, Cardano developer IOHK acknowledged that they’re close to clinching “three critical mass indicators” that might result in the launch of their long-awaited Vasil arduous fork in September. Vasil goals to enhance Cardano’s scalability and transaction throughput by pipelining.

The improve might additionally enhance the decentralized utility (DApp) and sensible contract capabilities by altering the Plutus script, a programming language used for sensible contracts on the Cardano blockchain.

However the uplifting updates have failed to draw ample consumers as ADA’s worth development within the final 24 hours reveals.

Bear market rally

On the every day chart, ADA’s worth rose to an intraday excessive of $0.462 on Sep. 1, a day after bouncing from its sessional low of $0.424, up almost 9%.

Associated: Cardano outranks Bitcoin in global top intimate brands in new report

Nonetheless, the transfer accompanied decrease buying and selling volumes, suggesting weaker conviction amongst merchants about an prolonged rally. 

ADA/USD every day worth chart. Supply: TradingView

ADA’s modest worth rise additionally got here after a pointy 28.5% decline, usually as a consequence of quick protecting, i.e., when merchants purchase again borrowed tokens to shut their open bearish place, thus lifting the spot worth briefly.

Because of this, Cardano’s rebound could also be a bear market rally. This expectation emerges from ADA’s exposure to macroeconomic risks that have kept the ADA/USD pair nearly in lockstep with U.S. stocks. 

ADA/USD and Nasdaq daily correlation coefficient. Source: TradingView 

For instance, the correlation coefficient between ADA and Nasdaq was 0.80 on Sept. 1.

Descending triangle breakdown ahead?

From a technical perspective, ADA has been painting a descending triangle pattern on its daily chart since May 7. 

In detail, descending triangles appear as the price consolidates inside a range defined by a falling upper trendline and a horizontal lower trendline. They typically resolve after the price breaks below the lower trendline and, as a rule, can fall by as much as the maximum triangle height.

ADA/USD three-day price chart featuring descending triangle breakdown setup. Source: TradingView

ADA now tests the lower trendline of its descending triangle setup for a potential breakdown, as shown below. The token will fall to $0.268 by September if the pattern plays out as mentioned above, or a 40% drop from current prices.

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