Cardano Price Prediction: ADA is not out of the woods just yet
- 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.
ADA USDT
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
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.
