Cardano price prepares for a disastrous sell-off
- Cardano price has been in a downtrend for 197 days, currently sitting 75% below its all-time high.
- ADA is currently trading on thin ice as it has rechallenged key support for the first time this month.
- A dip below $0.74 will inevitably lead to a brutal correction towards $0.45.
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.
Author
FXStreet Team
FXStreet
