- Cardano price will meet strong resistance near $1.20.
- 50 twelve-hour simple moving average (SMA) has turned down for the first time since December 2020.
- Head-and-shoulder top pattern fortifies the bearish outlook.
Cardano price is trading heavy in the context of a developing head-and-shoulders top. Based on price symmetry, traders should expect a drift higher over the next 2-3 days before ADA breaks below the neckline.
Cardano price risk greatly outweighs reward
Only six days ago, ADA was near the all-time high and looked primed for a solid breakout to at least the 1.618 Fibonacci extension level at $1.79. A wave of doubt has overcome the cryptocurrency and forced it below the 50 twelve-hour SMA at $1.17, creating the right shoulder of the head-and-shoulders top.
A break below the neckline at $1.08 will find actionable support at the 100 twelve-hour SMA at $1.02 and the psychologically important $1.00 level. Additional support should materialize at the 0.382 Fibonacci retracement level at $0.95.
The bearish path for ADA will soon lead to the 0.50 retracement level at $0.78, which is slightly below the February 23 low at $0.80, and the hammer close on February 15 at $0.84. It will be formidable support and represent a 28% decline from the neckline.
ADA/USD 12-hour chart
Cardano price should drift higher over the next 2-3 days, but a close above the left shoulder at $1.16 on a 12-hour candlestick will void the head-and-shoulders pattern and reset traders’ sights on a new all-time high. After clearing $1.485, bulls have the opportunity to rally ADA to the 1.618 Fibonacci extension at $1.79.
The 5th ranked cryptocurrency by capitalization is highly speculative. Hence, traders need to be precise in taking their entry points to ensure there is some space to manage the volatility and avoid triggering their stops too early.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
XRP price stuck under $0.65 despite Bitcoin hitting $38,000 three times in one week

Ripple (XRP) and Bitcoin (BTC) prices do not show parity. Despite both featuring among the crypto top three, Ripple price is stuck under $0.6500 while Bitcoin has managed to foray north, testing the $38,000 psychological level for the third time in a week.
FTX token FTT jumps 8% as exchange wins approval to start selling $744 Million in Grayscale and Bitwise assets

FTX token (FTT) has jumped 8% following news that a US bankruptcy court of Delaware has allowed the now-defunct cryptocurrency exchange to move forward with a November 6 request.
Optimism price slips under critical support as $40 million worth of OP due to flood market Thursday

Optimism (OP) price has dropped 5% in the last day, but trading volume is up a stark 15% over the last 24 hours as of press time. The disparity comes amid expectations of more tokens in the OP market relative to what traders are willing to buy at current prices.
Pando becomes thirteenth BTC ETF applicant as BlackRock presents revised in-kind model
/definition-of-etf-21007500_XtraSmall.jpg)
Amid the ongoing spot Bitcoin ETFs race, a new player has joined the marathon. Pando Asset AG has become the thirteenth applicant even as the US Securities & Exchange Commission (SEC) continues to engage with prospective issuers.
Three key BTC accumulation levels before ETF approval in January 2024

Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.