Cardano Price Forecast: ADA eyes 30% decline to flash crash lows of $0.95
- ADA/USD teases a head-and-shoulders breakdown on the 4H chart.
- The Cardano price risks a sharp drop towards Wednesday’s low of $0.95.
- RSI has room to drop further, as ADA bears sustain below 200-SMA.
Cardano (ADA/USD) is falling for the second straight day on Friday, resuming this week’s bearish streak following Thursday’s temporary reversal.
The fifth most widely traded cryptocurrency is looking to retest the $1 mark, as the crypto space remains in a sea of red after China intensified its crackdown on cryptocurrencies.
Cardano is down nearly 40% from its all-time highs recorded at $2.4652 a week ago.
ADA/USD: Poised for another sell-off on a sustained breach of this key support
As observed on Cardano’s four-hour chart, Friday’s sell-off received additional impetus after the 21-simple moving average (SMA) pierced the 100-SMA from above, representing a bearish crossover.
The recent volatile price action has carved out a head-and-shoulders (H&S) formation, with the ADA bears on the verge of confirming a pattern breakdown.
The ADA price awaits a four-hourly candlestick closing below the H&S neckline at $1.4549, which would open doors towards the pattern target measured at $0.95. Wednesday’s flash crash low coincides at that level.
The sellers have found acceptance below the critical 200-SMA at $1.5339, adding credence to a potential move lower while the Relative Strength Index (RSI) looks south towards 30.00.
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ADA/USD: Four-hour chart
On the flip side, the pattern neckline support now resistance could offer initial resistance, above which the 200-SMA will get retested.
A sustained break above the latter could re-ignite the recovery towards the downward-pointing 21-SMA at $1.6741.
Ahead of that, the ADA bulls need to scale the $1.50 psychological level convincingly.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
