Cardano looks ready to resume its longer-term slide as it formed a head and shoulders pattern on the 4-hour chart to indicate that the correction is over. The Fibonacci extension tool on the daily time frame shows the next downside targets.
Price is closing in on the 38.2% level at 0.03800 which is the neckline of its shorter-term reversal pattern. Stronger selling pressure could take it down to the 50% level near the swing low and 0.0300 major psychological mark or until the 61.8% level at 0.0214. The 78.6% level is at 0.0120 and the full extension is all the way down to 0.0002.
Price is back below the 100 SMA dynamic inflection point to signal that long-term bearish pressure is in play and that this could hold as resistance moving forward. RSI, however, is turning higher to suggest that buyers might still be able to put up a fight. Stochastic is also indicating oversold conditions or that sellers are exhausted. Allowing bulls to take over could lead to another bounce to nearby resistance levels.
Cardano recently published a blog post regarding “Fake Stake” attacks and declared they are not vulnerable to this type of issue. It stated:
The Cardano blockchain underlying Ada is based on proof-of-stake (PoS), but its Ouroboros protocol uses no bitcoin code and is not affected by the PoSv3 problem. This is not just good luck, but a consequence of the thorough, formally-verified approach taken during Cardano’s development.
This comes after a study by US researchers discovered a fatal vulnerability that affects 26+ proof-of-stake cryptocurrencies that allows a network attacker with a very small amount of stake to crash any of the network nodes running the corresponding software.
Furthermore, Cardano’s blog post stated that “Not only does Cardano have a fundamentally different foundation, but that foundation is the result of multiple peer-reviewed academic papers, and an unprecedented collaboration between researchers and developers.”