• Cardano price teeters on the edge of the critical $1.40 level as altcoins negatively decouple from Bitcoin.
  • 200 twelve-hour simple moving average (SMA) offers explicit support but not price traction.
  • Smoothed daily volume has begun to trend higher after trending lower throughout the symmetrical triangle formation.

Cardano price has fallen below the lower trend line of a symmetrical triangle that extends back to the May 19 low. It is a negative development and places the spotlight on the viability of the $1.40 support engineered by the 2018 high. The green token, like other altcoins, is positioned at a critical threshold that will have ramifications for weeks. 

Cardano price inches closer to making a declaration of intentions

Today, ADA is the 5th largest cryptocurrency with a market capitalization of $46.73 billion. It is sandwiched between Binance Coin and Dogecoin. The decentralized, proof-of-stake (PoS) blockchain competes with Ethereum, and NBC recently categorized Cardano as the “most significant proof of stake cryptocurrency on the market.”

During the development of the ADA symmetrical triangle volume has declined, and the correlation to Bitcoin has remained tight. However, over the last few days, the volume has turned higher, and the close correlation with Bitcoin has tapered. Combining the metrics with the triangle’s resolution to the downside on June 11 proposes that Cardano price tendencies are becoming token-specific and may point to a convincing break of the omnipresent $1.40. 

Supplementing the tendency towards the overthrow of Cardano price is the weight of a declining 50-day SMA at $1.60, the minor trend line from the June 3 high at $1.56 and the flattening 10-week SMA at $1.50.

A daily close below $1.39 is the initial warning that Cardano price has bearish intentions and may be seeking a decline to the May 19 low of $0.97. If the weakness leads to a daily close below the May 29 low of $1.33, investors should prepare for a sizeable decline in the days ahead.

Obvious targets are the May 23 low of $1.04 and the May 19 low of $0.97, but it is recommended that investors ready for a sweep below the April 22 low of $0.90, pronouncing a 35% decline from the imposing $1.40 level.

ADA/USD 12-hour chart

It will take a close above the 50 twelve-hour SMA at $1.60 to disqualify the cautious Cardano price outlook and reveal a tactical opportunity for investors to trade a rally to the triangle’s upper trend line at $1.84.

ADA is one of the compelling blockchain stories in the cryptocurrency market, and Cardano price has capitalized on it from late December 2020 to the May high. Still, like other higher profile altcoins such as MATIC, investors need to question if the story has been priced into the digital asset.

Technical indicators are tilted bearish, and Cardano price action is not instilling confidence. ADA needs to prove itself moving forward before investors allocate capital, whether to the short side and long side

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast