Bitcoin‘s price dropped to $41,300, raising concerns among investors about potential larger losses. Despite the approval of an ETF, such a decline is not surprising given the volatile history of cryptocurrencies. Speculations about ADA Coin, one of the major altcoins, are now in focus.
After a period of consolidation within a rising parallel channel since June last year, ADA Coin’s price started to recover, signifying BlackRock’s entry into cryptocurrency. Despite ongoing SEC lawsuits, this event fueled market optimism, contributing to Bitcoin’s recent surge to the $49,000 threshold.
Following several unsuccessful breakout attempts, ADA Coin finally breached the resistance line of the channel in December. However, while the broader market showed significant recovery, ADA Coin struggled to keep up, reaching a peak of $0.68 on December 14th, with subsequent charts indicating a dominance of selling pressure.
The daily RSI is trending downward, and there’s a risk of Bitcoin’s price falling below $40,000 in the coming hours, possibly coinciding with the opening of Asian markets. Entering the weekend with weak volumes and such a market outlook could lead to worrisome outcomes.
Short-term indicators, like the six-hour chart readings, do not support hopes for a rise. ADA Coin has been trading within a declining parallel channel since December 14th, a pattern often leading to downward movements. Despite a bounce from the support line on January 8th, ADA Coin continues to trade with a 4% loss at $0.50. If ADA fails to break out of the channel, it might target the support zone at $0.37, while a potential upward breakout could lead to a 30% increase towards the $0.70 peak. However, with Bitcoin breaking a rising parallel channel and the cumulative value of cryptocurrencies at risk of dropping to $1.4 trillion, ADA Coin faces a possible worst-case scenario.
