Cardano price breaks crucial support putting ADA at risk of 10% drop
- Cardano price has broken a trendline to the downside and couldn’t close above $1.40
- The profit-taking in the markets is not helping to support ADA from going higher.
- To the downside, the only real first support sits at $1.15
Cardano price needs to dip lower first for buyers to pick up ADA again and it higher.
Cardano price tries to hold gains.
Since June 21, Cardano price had a nice run higher, with buyers coming in at $1.00 and pushing it to $1.40 on June 29. But the hype behind ADA is fading now, and it looks heavy to the downside with not much support to cling on to.
In a bandwidth, Cardano price was quite smacked in the middle of the $1.00 and $1.90 when touching $1.40 before fading the last few hours. A clear break of the upward trendline could send ADA towards $1.30.
The upper Bollinger band confirms the trend and looks like is setting a cap on any possible upside potential for now. On the downside, the lower Bollinger band looks to be falling in place with the descending trendline starting from June 16.
Between $1.11 and $1.15, Cardano presents the lower Bollinger band and the descending trendline as support where buyers have to step in for an upswing again.
ADA/USD 12 hour chart
Markets, in general, are looking for direction, and with a little bit of risk-off, Cardano price might be dipping lower in the coming days towards the weekend.
The median Bollinger band might provide some short-term support, and if markets would turn back to risk-on, that might help lift ADA back again to retest $1.43.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
