Cardano price consolidation likely to trigger bearish breakout
- Cardano price is consolidating inside a descending triangle setup.
- A breakout from this pattern could trigger a 17% crash to $0.351.
- A decisive daily candlestick close above $0.492 will invalidate the bearish thesis.
Cardano (ADA) price consolidation could trigger a breakout soon, knocking ADA down by double digits to key support levels.
Also read: Cardano price flashes buy signal, but will ADA bulls cooperate?
Cardano price edging closer to a crash
Cardano price has crashed 51% from its 2024 high of $0.810 and set up a low at $0.396 on April 13. Since then, ADA has been consolidating above the $0.426 support level and setting up three lower highs. This technical formation is termed an ascending triangle and forecasts a 17% crash to $0.351, obtained by measuring the distance between the first swing high and swing low to the breakout point at $0.426.
The Relative Strength Index’s (RSI) failed attempt at clearing the mean level of 50 is a supporting factor to the bearish outlook explained above. Hence, it is highly likely that Cardano price will retain the bearish momentum from the 51% crash and continue its descent. However,, ADA might pause around $0.392 before reaching its theoretical target of $0.351.
Read more: Cardano Price Forecast: ADA's recent breakout could trigger 15% rally
ADA/USDT 1-day chart
On the other hand, if the market outlook improves, it would give Cardano price the boost it’s needed. In such a case, if ADA produces a decisive candlestick close above $0.490, it would invalidate the ascending triangle and bullish thesis by producing a higher high.
If the bullish momentum sustains, then Cardano price could rally 12% from here and retest the $0.550 hurdle.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
