• Cardano price has sliced through the descending triangle’s base at $0.400, triggering a bearish breakout.
  • The setup forecasts a 40% correction to $0.241 that could knock ADA down to levels last seen in January 2021.
  • A daily candlestick close above $0.482 will create a higher high and invalidate the bearish thesis.

Cardano price shows a lack of willing buyers that have pushed it below significant support, triggering a bearish market structure break. This development has a small window to recovery, failing to do so could result in a sell-off.

Cardano price at an inflection point

Cardano price has produced a descending triangle which is obtained by connecting the four lower lows and three equal lows produced since May 10. 

This technical setup forecasts a 40% downswing to $0.241, determined by adding the distance between the first swing high and swing low to the breakout point at $0.400. On October 10, ADA produced a daily candlestick close below this level, confirming a bearish breakout and signaling the breakout of the descending triangle.

If ADA fails to recover above the horizontal support at $0.400, things will continue to deteriorate. Therefore, investors need to pay close attention to the daily candlestick close on October 11

Additionally, Bitcoin price is also looking ready for another leg down, which could help ADA bears reach their destination quicker. 

Interested investors can open short positions on the retest of $0.400 and wait for a confirmation via daily candlestick close.

ADA/USDT 3-day chart

ADA/USDT 3-day chart

On the other hand, if buyers step in at this juncture and trigger a minor recovery above the $0.400 hurdle by producing a daily candlestick close above it, it would indicate a resurgence of bulls. 

If this development pushes Cardano price to produce a higher high above $0.482, it will invalidate the bearish thesis for ADA and potentially trigger a further extension of the rally to $0.504.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

More Bitcoin News

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price has been following the broader market bullish cues over the last few days sustaining its rise from 48 hours ago. Although the sentiment seems to have shifted slightly, UNI holders can still book profits if the Decentralized Finance (DeFi) token climbs to this level.

More UniSwap news

ATOM price suggests bears are still in control for these reasons

ATOM price suggests bears are still in control for these reasons

Cosmos price is producing a countertrend rally after suffering a steep decline throughout the month. If market conditions persist, ATOM could wipe out newly established bullish positions. Key levels have been defined to gauge ATOM’s next potential move.

More Cosmos news

Cardano Price Prediction: A new yearly low before the bounce

Cardano Price Prediction: A new yearly low before the bounce

Cardano price has suffered a vicious downtrend move throughout November. Ss price consolidates, the technicals suggest a bounce occurs while on-chain metrics hint that investors are considering securing profits sooner than later.

More Cardano news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP