Cardano price could lose 12% as bulls remain unable to make new highs in this steep rally
|- Cardano price is trading in positive territory as the US trading sessions get under speed.
- ADA sees bulls overheating, which means that the expiry date is moving closer at a quick pace
- The risk of a firm rejection and big fade gets underway and might see $0.34 getting broken to the downside with more losses at hand.
Cardano (ADA) price is set to tank sharply as bulls cannot keep the momentum going while several indicators are already starting to flash red and indicate distress at hand. The trading performance from Monday was too big, too hot and too quick to be sustainable, putting a collapse at risk in ADA price action. Expect to see pressure on $0.34 soon. Once that level is broken, a leg lower toward $0.324 for a test and possible bounce is expected.
Cardano price sees bulls being too eager, too blunt
Cardano price might be jumping higher at the time of writing, while a few distress signals are coming from its technical performance. Traders will confirm that trading any asset is often not a sprint but a marathon. With ADA set to jump higher again at a staggering pace, the Relative Strength Index (RSI) is breaching the overbought barrier and is limiting any further upside potential for the altcoin.
ADA could trade another few cents higher toward $0.36 or even $0.37. That is as much upside potential as is left before a big cap and firm rejection will hit the price action hard. Expect to see a very deep fade that could go all the way back to $0.34 and even $0.324 as both the 200-day and the 55-day Simple Moving Average will be proven a tough, bearish fortress that will not be broken overnight.
ADA/USD 4H-chart
Altcoin traders might be even more at risk as quite a large part is not understanding what is going on in the background on the financial market stage. A rather controlled rally higher would be more viable, and traders in ADA would get less exposed to the whipsaw moves in global markets. When that pattern gets painted on the daily chart, a nice rally higher toward $0.42 could be in the making with 23% gains in the longer term.
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