While the Midnight sidechain supports a bullish long-term fundamental outlook, technical indicators signal a potential sell-off risk clouding the near-term Cardano price prediction.
At its core, Midnight addresses the growing demand for confidential transactions and data protection within the Cardano ecosystem, widely interpreted as a major catalyst for mass adoption.
It unlocks new developer tools and interoperability between other chains, using sidechain bridges to expand Cardano’s use case to encompass that of its competitors, like XRP.
Still, ADA remains vulnerable to broader market headwinds. The token is down 8% on the week, lagging behind other altcoins as geopolitical tensions escalate in the Israel-Iran conflict.
Cardano Price Prediction: Is a Sell-Off Avoidable?
The sell-off risk stems from the daily chart, with a recent bear candle closing below the lower Bollinger Band—a typical sign of short-term overselling.
However, with the Cardano bouncing from the lower support of a 6-month descending triangle around $0.51 to reclaim the band, it could be a sign of seller exhaustion rather than a prevailing downtrend.
ADA / USDT 1-day chart, descending triangle pattern. Source: TradingView, Binance.
Momentum indicators lean toward a bullish case. The RSI has sharply reversed after dipping below the oversold threshold at 30, indicating that buyers are stepping in.
More so, the MACD line is on the verge of a golden cross, preparing to overtake the signal line on the daily timeframe—an early sign of an emerging uptrend.
If the crossover unfolds, it could solidify the event as a “Bollinger Band buy” reversal signal, setting ADA on the breakout path near the 0.618 Fibonacci level at $0.647.
A decisive move above this level could break the multi-month pattern, setting sights on a technical target 170% higher around the $2.618 Fibonacci extension at $1.4285.
Still, this bullish outlook hinges on clearing the median resistance of the Bollinger Bands—the 20-day SMA—which currently caps upward momentum and reflects prevailing bearish pressure.
The Next Evolution in Self-Custody Solutions is Here – You’re Early
Best Wallet is a new non-custodial crypto wallet that introduces a set of new and robust features to challenge the dominance of existing solutions like MetaMask and Exodus.
This Web3 storage solution supports assets in more than 50 blockchains and offers low fees for swaps.
It also introduces tools like “Upcoming Tokens” – a crypto screener that allows users to identify and invest in top ICOs while they are still flying below most investors’ radars.
This utility extends to TradFi with the Best Card, replacing the traditional debit card, allowing seamless real-world transactions using stablecoins anywhere that Mastercard is accepted.
Best Wallet is already making waves, raising over $13.3 million in the presale for its new $BEST utility token. Its app is already featured on Google Play and the App Store.
To learn more about Best Wallet, follow its official X, Telegram, or visit the Best Wallet website.
The post Cardano Price Prediction – ‘New ADA’ Midnight Launch Triggers Sell-Off Risk: Here’s Why appeared first on Cryptonews.
