- Cardano price has seen bulls attempting to break out of its downtrend since mid-November.
- ADA price buying pressure stopped at an essential technical intersection at $2.00
- ADA price leaning bearish as more and more technical elements turn into resistance and support price weakening.
Cardano (ADA) price has been under bearish pressure as price action started to slip to the downside around November 11. Since then, ADA price has formed a bearish triangle with the base at $1.67 and the descending trend line providing systemic resistance and persistent bearish price action. Expect the triangle to be completed this week with a break to the downside, holding another 25% potential devaluation in Cardano price towards $1.30.
Cardano price targets $1.30 as in this downtrend
Cardano price has been under siege by bears who are controlling ADA price action for the moment since November 11. In the downturn, bears succeeded in acquiring the monthly pivot, the 55-day Simple Moving Average (SMA) and essential historical support at $2.00, which flipped to resistance against any attempts bulls tried to break the downtrend. Since Monday, bears added the 200-day SMA at $1.89, together with another vital support element to their arsenal, making it very tough for any bullish action to break the trend for now.
ADA price is caught in this bearish triangle with its base at $1.67 and the monthly S1 support at $1.71, and the descending trend line – confirmed already four times – completing the pattern. A break below the double base area opens up the door to clear skies with no fundamental support elements where bulls could try to mount a recovery. This suggests the possibility of another 25% devaluation. The S2 monthly support at $1.46 will probably only slow down the nosedive and trigger some small profit-taking among bears.
SOL/USD daily chart
Expect bulls to show up at the red ascending trend line, however, which originated from early February and has been present at some key moments.. Expect a test to come in at around $1.30-$1.33, depending on the timing of the completion of the bearish triangle. Expect bulls to eagerly step into this discounted ADA price quotation and start buying. ADA price may be further supported by the fact that other cryptocurrencies will also probably be trading around similarly attractive levels around the same time, creating a tailwind – or a buy-wave – in the asset class overall.
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.
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.