ADA Price Prediction: Cardano Price will Face 10% Downside Risk If Buyers Lose this Key Support

ADA price Prediction: On April 13th, the Cardano coin price gave a massive breakout from the resistance trendline of an inverted head and shoulder pattern. This breakout was supposed to accelerate the buying pressure for a  further rally but amid the recent sell-off in the crypto market, the buyers couldn’t sustain above the breached trendline. Thus, the coin price plunge below the trendline and $0.4 has created a bull trap scenario which could force liquidation of the hasty buyers with a narrow stop loss and bring more selling orders into the market.

Key Points: 

• A V-top reversal in Cardano price reflects aggressive selling among market participants.
• To absorb the rising buying the ADA price may pullback to $0.4 before the correction phase continues
• The intraday trading volume in the ADA coin is $250.5 Million, indicating a 25% loss

Source- Tradingview

The Cardano price has witnessed significant correction since last week, recording a 15.65% downfall, a coin dropped from the $0.46 to the $0.39 mark. Today, the altcoin is down 1.11% and trying to sustain above the $0.378 local support.

The aforementioned support backed by 38.2% Fibonacci retracement and 50-day EMA forms a high area of interest that could assist buyers to reaccumulate. Thus, this bullish reversal may surge the coin price by 5% to retest the breached trendline and $0.4 level as potential resistance.

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If the selling persists, the coin price may form a new lower higher at $0.4 and prompt the resumption of a bearish crossover. A potential breakdown below $0.378 will tumble the ADA price by 10% to reach $0.35.

Technical Indicator

Moving Average Convergence/Divergence: A sell-signal from the bearish crossover of the MACD(blue) and signal(orange) line encourages a longer correction for ADA price.

Fibonacci Retracement Indicator: a correction phase to the 50% FIB level at $0.35 will still be considered a healthy retracement which may keep the odds of bull trend resumption higher.

Cardano Coin Price Intraday Levels

• Spot price: $0.39
• Trend: Bullish
• Volatility: Medium
• Resistance level- $0.4 and $0.46
• Support level- $0.38 and $0.35

The post ADA Price Prediction: Cardano Price will Face 10% Downside Risk If Buyers Lose this Key Support appeared first on CoinGape.

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