Lorenzo Stroe
Independent Analyst
- Cardano price had a major breakdown from a key pattern on the daily chart.
- The digital asset is at risk of yet another bearish break from a short-term pattern.
- The only chance for ADA bulls is to hold a critical support level.
Cardano had a major 14% sell-off in the past 48 hours and bears remain in control, eying up even a steeper pullback. The digital asset remains above a key support level which will determine its faith in the next week.
Cardano price at risk of a huge crash
On the daily chart, Cardano price had a significant breakdown from an ascending broadening wedge pattern with a price target of about $0.77 in the long-term. The digital asset bounced once to re-test the previous support trendline unsuccessfully.
ADA/USD daily chart
Additionally, on the 4-hour chart, Cardano remains bounded inside a descending triangle pattern with a support trendline formed at $1.02.
ADA/USD 4-hour chart
Considering the breakdown of the key pattern on the daily chart, it is more than likely for Cardano price to lose the support at $1.02 which will have a similar price target of about $0.78, adding even more credence and strength to the first breakdown.
The only chance for Cardano bulls is to hold $1.02 into a significant rebound towards the upper trendline of the 4-hour chart pattern at $1.10. The support trendline at $1.02 has been defended around 10 times in the past three weeks.
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