Cardano price prepares for a disastrous sell-off

Cardano price continues to decline without any signs of a market bottom. Although ADA sits 75% below its all-time high, the future looks quite pessimistic. 

Cardano bulls look exhausted

Cardano price continues printing lower lows even after the sell-off seen on January 18. Such market behavior should be a reason of concern for ADA bulls. Especially, after the multiple wicks that the token has created around the lower boundary of a parallel channel where its price currently trades. 

Another downswing below the $0.74 support could increase the selling pressure behind Cardano. If this were to happen, ADA price might take a 13% nosedive to $0.69. Failing to hold above this crucial support level could generate panic among investors and result in a sell-off to $0.40. 

Cardano Daily Chart

Although the odds appear to favor the bears, the high levels of volatility in the cryptocurrency market could easily invalidate the pessimistic outlook. Only a decisive daily candlestick close above the swing high at $1 can result in price recovery. 

If ADA bulls can manage to hold Cardano price above $1 for the next coming weeks, targets for a bullish reversal will lie beyond $1.25.