Cardano price frustrates investors as bears step in with confidence
- 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.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
