Cardano price forms risky patterns despite Pyth oracle integration
Cardano’s price remained in a bear market after plunging by nearly 60% from its highest point in September, despite several announcements.
- Cardano price has slumped by nearly 60% from its August highs.
- It recently announced a partnership with Pyth Network, a top oracle platform.
- The token has formed bearish patterns, indicating further downside.
Cardano integrates with Pyth Network after Midnight launch
Cardano (ADA) token dropped to $0.4255 today, Dec. 12, even after the network received its first major oracle partnership. In a statement, Cardano said that it had integrated with Pyth Network, one of the biggest oracles in the crypto industry.
Pyth Network (PYTH) secures nearly 300 protocols and has a total value secured or TVS of $4.62 billion. Some of the top protocols it secures are Jupiter, Kamino, Drift, NAVI Lending, and Avantis.
This integration is important for Cardano, a layer-1 network that has struggled to attract developers over the years. One reason for this is that it has had no mainstream oracle provider.
Oracles are essential in the crypto industry as they help to bring off-chain data like price feeds on-chain. With Pyth Network, Cardano developers will now be able to access price feeds of key assets like stocks, cryptocurrencies, commodities, forex, and ETFs.
Therefore, Cardano may begin to gain market share in sectors such as decentralized finance and real-world asset tokenization.
The Pyth integration is also important, as partnerships with blue-chip oracle providers is one of the main objectives of the recent withdrawal of 70 million ADA tokens from the treasury. The other four pillars are stablecoin integrations, cross-chain bridges, institutional custody, and analytics and pricing tools.
The Pyth integration came in the same week that Cardano launched the Midnight mainnet and the NIGHT token, which has gained a market capitalization of over $823 million. Many Cardano holders who participated in the Glacier airdrop and the scavenger mine have already started claiming their NIGHT tokens.
Cardano price technical analysis
The daily chart shows that ADA price has been in a steep downtrend in the past few months. It recently dropped below the support level at $0.5080, the lower side of the inverted cup-and-handle pattern.
The token has also formed a bearish flag pattern, consisting of a vertical line and a horizontal channel. It remains below the 50-day and 100-day Exponential Moving Averages.
Therefore, the most likely Cardano price forecast is bearish, with the next key target being at $0.30. This view will be confirmed when it drops below this month’s low of $0.3738.
