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Bitcoin looks good, but the Cardano price faces one more shake-out

  • Cardano price has fallen below the 21-day simple moving average.
  • ADA price shows bearish volume on intra-hour time frames.
  • Invalidation of the downtrend is a breach above $0.50.

Cardano price shows subtle signs of concern. It is not the best digital asset in the bunch currently. Best to consider finding a more promising opportunity.

Cardano price is untrustworthy

Cardano price, like many cryptocurrencies, shows retaliation amidst the bearish onslaught prevalent for several weeks. However, subtle cues still show that the ADA price might not be ready for the anticipated bull run.

Cardano price currently trades at $0.46 after rallying to a high of $0.49 during the Asian market session on July 8, 2022. The profit-taking consolidation has subtly gone too far as the bulls have breached through the 21-day simple moving average (SMA) on the 3-hour chart. Consecutive indecision-doji candles have been printed since the breach, which confounds early evidence of bearish rejection at the SMA. Additionally there seems to be bearish presence within the current downtrend move on the Volume Profile Indicator.

tm/ada/7/8/22

ADA/USDT 3-Hour Chart

Traders should stay clear from placing an early entry. There may be better opportunities in the coming days as the Bitcoin price shows promising technicals. A break below the 8-day moving average at  $0.45 could be the catalyst to a future liquidity hunt targeting $0.40

Invalidation of the bearish thesis is a break and definitive candle close above $0.50. If the bulls breach this level, they may be able to rally as high as $0.55, resulting in a 19% increase from the current Cardano price. 

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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