Cardano price could be facing a steeper correction, suggests technicals


  • Cardano price seems to be bounded inside a bear flag on the 1-hour chart.
  • The digital asset has attempted to rebound from the low at $0.112.

Cardano plummeted by 39% in the past three days after the entire cryptocurrency market collapsed, wiping out more than $90 billion in market capitalization. A notably bearish pattern has formed on the 1-hour chart for ADA, indicating that another pullback might be underway.

Cardano price has to climb above this level to avoid another pullback

On the 1-hour chart, ADA is bounded inside what seems to be a bear flag, which is a bearish continuation of a downtrend. Bulls need to first push Cardano price above the 50-SMA which was lost as a support level on November 25. This moving average coincides with the 200-SMA at $0.138 adding more strength to this level.

ada price

ADA/USD 1-hour chart

Furthermore, to invalidate the potential bear flag, Cardano price would need to crack the upper boundary of the ascending channel, but more importantly, climb above $0.15. By definition, if the retracement of a bear flag is higher than 50%, it usually invalidates it. 

ada price

Cardano new addresses chart

It seems that the number of new addresses joining the network of Cardano continues to rise at +70% in the past week. In the past 24 hours, this number jumped from 8,570 to 9,650 despite the pullback, indicating that new investors remain interested in the digital asset.

On the other hand, if the bear flag is confirmed and bears push Cardano price below the lower boundary of the channel, ADA can quickly dip towards $0.097, which would be the height of the previous pole.

 

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Forecast: ADA targets 900% bull rally, but it must clear $0.33 first

Cardano had a significant rally towards $0.355 at the beginning of 2021. After a notable dip to $0.228, bulls bought it and managed to push Cardano price to $0.33 again before a small rejection.

More Cardano News

Ethereum price aims to flush out doubters before the ultimate breakout to $2,000

Ethereum bulls bought the dip on January 11, pushing the digital asset from a low of $915 towards $1,256. The smart-contracts giant has been outperforming Bitcoin in the past 24 hours despite the negativity seen on social media.

More Ethereum News

XLM Price Prediction: Stellar consolidates ahead of a 30% move

XLM price trades at $0.291 at the time of writing after a healthy consolidation after hitting a 2021-top at $0.411. There is a high chance that XLM is about to see a massive breakout or breakdown within the next 24 hours.

More XLM News

Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. The panic sell-off was stopped on its tracks at the 26-EMA on the daily chart as bulls quickly bought the dip and created a V-Shape recovery pushing BTC towards $40,100 again. 

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast

BTC

ETH

XRP