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Cardano price could shed more weight, but panicking investors can exit their positions here

  • Cardano price has been in a downtrend since the August 14 swing high at $0.594.
  • The 23% sell-off will likely undergo a relief rally to $0.494 or $0.510 before resuming its downward move.
  • A daily candlestick close that flips the $0.609 hurdle into a support floor will invalidate the bearish thesis. 

Cardano price has seen three consecutive down candlesticks denoting an aggressive seller-dominated regime. This massive sell-off seems to originate from the influential lead crypto Bitcoin and is affecting many altcoins. 

Cardano price and potential relief rally opportunity

Cardano price has crashed 23% over the last four days and is currently trading at $0.470. The recent sell-off has pushed ADA to slide below the midpoint of the $0.380 to $0.609 range at $0.494.

A stabilization of selling pressure for big crypto could see altcoins undergo a relief rally, which could potentially push Cardano price higher. In such a case, ADA is likely to revisit the $0.494 hurdle, but in some cases, ADA might rally more concertedly and retest the $0.525 resistance level.

This relief rally will provide a haven for investors to get out of their loss-making positions, especially if they believe the market will crash further.

If the sell-off does not stop, Cardano price could visit the $0.419 to $0.434 support floors. These barriers could potentially pause the ongoing bearish momentum and give holders an opening for a much-needed relief rally.

ADA/USDT 1-day chart

ADA/USDT 1-day chart

On the other hand, if Cardano price manages to undo the losses seen over the last four days, it will signal a resurgence of buyers. However, if ADA can flip the range high at $0.609 into a support floor, it will invalidate the bearish thesis.

In such a case, Cardano price could attempt an upswing to $0.749.

Author

Akash Girimath

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.

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