- Cardano price has been unable to rectify the prevailing downtrend since early September.
- A new chart pattern suggests additional losses are to be expected for ADA.
- Cardano must hold above $1.18 to void the bearish outlook.
Cardano price has failed to galvanize investors’ enthusiasm as it continues to record lower highs. The prevailing downtrend suggests that recovery would be challenging for ADA. The Ethereum killer is starting to form a chart pattern that suggests a bearish forecast for the token.
Cardano price reveals pessimistic forecast
Cardano price is forming a descending triangle pattern on the 4-hour chart, as ADA has registered lower highs. The governing technical pattern indicates a pessimistic outlook, with a bearish target of a 21% descent.
Investors should note that Cardano price may continue to bounce within the prevailing chart pattern before a decisive move is made, slicing through the confines of the triangle. If ADA breaks below the lower boundary of the governing technical pattern at $1.18, the bears could be aiming a 21% decline toward $0.93.
However, Cardano price may discover immediate support at the 50 four-hour Simple Moving Average (SMA) at $1.35, then at the 21 four-hour SMA at $1.30, intersecting with the 78.6% Fibonacci retracement level.
If ADA loses the aforementioned line of defense, Cardano price may drop lower, targeting the July 28 low at $1.25, then at the June 21 low at $1.00. Only a massive sell-off with a significant increase in sell orders would see the token reach the bearish target at $0.93, a level not seen since April 22.
ADA/USDT 4-hour chart
Cardano price could aim to escape the downtrend by breaking above the upper boundary of the triangle at $1.41. However, another line of resistance may appear at the 50% retracement level at $1.47, coinciding with the 100 four-hour SMA.
Additional hurdles may emerge at the 38.2% Fibonacci retracement level at $1.53, then at the 23.6% Fibonacci retracement level at $1.62 before Cardano price faces further resistance at the 200 four-hour SMA at $1.70.
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.