• Cardano sees bulls being rejected against the monthly pivot and descending trend line.
  • ADA bears can push price action below $1.67 support.
  • A 25% correction could unfold as more bulls pull the plug out of their position as support fades.

Cardano (ADA) saw bulls trying to raise a fist and fight the downtrend which had been going on for the greater part of November. Brief support at $1.40 rebooted an uptrend on November 29 that lasted until Thursday. ADA price got a firm rejection, however, and then saw increased selling pressure as more shorters jumped on the downtrend as it broke below $1.67. With no immediate support in the near vicinity, a 25% correction could be in the making before ADA finds some support.

Cardano bears are overtaking price action

Cardano price has failed to successfully begin an uptrend after being continuously rejected by the black descending trend line and the monthly pivot at 1.180. Now bears are looking to be successful in their attempt to penetrate support at $1.67, which if it breaks will see bears run price action lower.

ADA price is now dangling and looks quite bearish, with the first near support from a longer-term orange ascending trend line around $1.39. That would result in a 25% correction and devaluation of its price and would see bulls fleeing the scene.. If the orange trend line should breach, expect the monthly S1 support at $1.20 to trigger bulls to buy the dip with Cardano quoting at a very attractive discount.

ADA/USD daily chart

ADA/USD daily chart

If bulls were to return – because of some overall tailwind emerging in global markets, say – expect a successful break above the black descending trend line and the monthly pivot to test  $1.90 and $2.0. That area will prove to be a hard nut to crack because of two crucial resistances very close to one another. Once through, the price could excel further towards either 2.21 or 2.74.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price sees traders balancing on the sharp end of the blade

Bitcoin price sees traders balancing on the sharp end of the blade

Bitcoin price action is slowly but surely trying to move north on price charts as traders try to continue and hold on to the momentum that started on Monday morning.

More Bitcoin News

Litecoin Price Prediction: LTC stalls at a crucial threshold

Litecoin Price Prediction: LTC stalls at a crucial threshold

Litecoin price is trying to find its footing after lifting from support reinforced at $50.50 and topping out at $55.72. This northbound move would have pushed the token out of a narrow-ranging channel. 

More Litecoin News

Dogecoin price and on-chain metrics forecast 35% rally for DOGE

Dogecoin price and on-chain metrics forecast 35% rally for DOGE

Dogecoin price has been stuck trading between two barriers since August 28. The recent attempt to push through the upper limit indicates that DOGE buyers are ready to push it higher. 

More Dogecoin News

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price seems to have undone its breakout gains seen in the last week of September. This downtrend has morphed into a tight consolidation showing no volatility.

More Crypto.com News

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP