- Cardano price falls under low volume.
- Smart money fake-out could occur after a sweep-the-lows event near $0.42.
- This thesis remains neutral unless $0.40 is breached.
Cardano price could be setting up for a sweep-the-lows event in the coming days; Countertrend day traders should be wary of the trend.
Cardano price is a traders chart
Cardano price shows a steep decline, which could extend further. ADA price has fallen over 70% since the most recent upswing was established from the $0.438 low. Despite the bullish divergences on higher time frames, a sweep-the-lows event is still possible. Therefore, counter-trend traders aiming for liquidity levels near $0.46 may need to re-think where their stop losses should be placed.
Cardano price currently auctions at $0.442. The Volume Profile indicator is falling, which confounds the idea of the bullish potential. Still, markets can also fall when buyers are missing. The 8-day exponential and 21-day simple moving averages have issued a bearish death cross, which is a signal not to take lightly. A breach of the lows at $0.438 is likely, but traders should keep their eye on the $0.42 level as it has acted as support and resistance in previous rallies.
For larger time frame traders and investors, a neutral bias is maintained unless $0.40 is lost. If bears breach this level, a short entry will be justified as the larger symmetrical triangle would be broken to the downside. ADA could embark on a 40% decline targeting $0.24. Invalidation would be the September 11 high st $0.52.
In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team
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