- ADA price shows strong bearish influence on the volume indicator.
- Cardano price has not produced a bullish candle strong enough to defend against the bearish trend.
- Invalidation of the bearish thesis is a breach above $0.69.
Cardano price may have seen all of the anticipated uptrend move post-May 12 sell-off. A dip below $0.20 is on the cards.
Cardano price could plummet
Cardano price continues the dramatic narrative as the digital asset has rallied an impressive 40% rally over the weekend. The ADA price is commencing a profit-taking consolidation with extreme bearish signals. Solely from a technical perspective, the indicators could be pointing to a catalyst in the making as bears are stepping in with confidence.
Cardano price shows bearish confluence on the Volume Profile Indicator. The ramping pattern displayed at the top of the newly established uptrend is the last pattern any investor wants to see. The indicator could be warning newer investors of a “sweep the lows” event in the coming weeks, with bearish targets at and below $0.20. It is worth noting that the bulls have not produced a candle of substantial strength to counter the bearish rally.
ADA/USDT 4-Hour Chart
Invalidation of the current downtrend thesis is a breach at $0.69. If the bulls can conquer this level, the target at $0.86 would be probable, resulting in a 50% decrease from the current Cardano price.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.