Cardano Price Analysis: Bearish Pattern Sets ADA Price for 24% Fall, But There’s a Catch

Cardano Price Analysis: Despite the ongoing uncertainty, the Cardano coin price is strictly following two technical levels which are a downsloping trendline and a crucial support of $0.377. Thus, these two converging levels are gradually squeezing the ADA price indicating the formation of a descending triangle pattern. In response to this pattern, the coin price is more likely to break the bottom support and prolong the prevailing downtrend.

Key Points: 

• The 38.2% FIB and 100-day EMA accumulated at the $0.38 level create a strong support zone.
• A breakout from either side of the triangle pattern will determine the future trend of Cardano’s price.
• The intraday trading volume in the ADA coin is $189.3 Million, indicating a 13% loss

Source- Tradingview

By the press time, the Cardano coin price trades at the $0.38 mark and shows a 0.8% intraday gain. The recent reversal from the $0.377 support suggests the altcoin will continue its consolidation phase within the triangle pattern.

Thus, if the supply pressure persists, the ADA price is most likely to breach the $0.377 neckline support in the coming week. A daily candle closing below the neckline will provide sellers with a new resistance level to offset the recovery attempt from buyers.

Also Read: Low Cap Crypto Gems Gunning To Explode In 2023

The post-breakdown level may tumble the Cardano price 24% lower to hit the $0.285 support at 78.6% Fibonacci retracement level.

However, a less likely yet possible breakout above the overhead trendline will undermine the bearish thesis and trigger a new recovery cycle.

Technical Indicator

Moving Average Convergence Divergence: The MACD(blue) and a signal(orange) breakdown below the mean signal a bear trend momentum in the market.

Exponential Moving Average: A bearish crossover between the 20-and-100-day EMA may encourage Cardano sellers for $0.377 support.

Cardano Coin Price Intraday Levels

• Spot price: $0.3815
• Trend: Bullish
• Volatility: Medium
• Resistance level- $0.42 and $0.46
• Support level- $0.37 and $0.34

The post Cardano Price Analysis: Bearish Pattern Sets ADA Price for 24% Fall, But There’s a Catch appeared first on CoinGape.

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