Cardano price weakens as bears print a new monthly low and aim for $0.62
|- Cardano price has established a new low to start the week.
- Bears have added further selling pressure establishing a down-bar during the New York session.
- A bullish engulfing above $0.883 will be the first signal to invalidate this thesis.
Cardano price (ADA) starts the week with negative signals flashing as bears have pushed it lower during the New York session. The chart suggests that bulls are beginning to lose faith in the relief rally which occurred based on fundamentals.
Cardano price should concern investors
Cardano price is not exempt from weekly opens that are standard trendsetters in the crypto arena. Bears managed to print an up bar on Sunday's late night Japan session, but unfortunately, the bullish engulfing candle has some mixed signals attached to it on the 12-hour chart.
For one, the bullish engulfing found support at $0.7761, which is the lowest low Cardano price has traded at all month. Secondly, the bears have flexed their power on ADA price, establishing a down bar during the New York session. Signals like these are usually indicators of weak hands in the market. Intraday traders should be aware that New York and London sessions are usually where smart money tends to operate most.
With that being said, ADA price may be due for some more downside as the early bulls supporting the $0.776 low are likely to be challenged during the week, with up to a 20% drop to targets of $0.67 and $0.62.
ADA-USD 8-Hour Chart
Despite the bearish signals weighing over Cardano price, traders should keep in mind that the amount of hype circling Cardano’s price is likely to come with fake-outs and increased volatility.
The first invalidation signal will be a bullish engulfing candle above the current New York session high at $0.813. Should this happen, bulls will likely produce more bullish momentum towards targets of $0.85 and $0.92, up to 20% above ADA price’s current level.
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