Cardano price weakens as ADA targets $1.80
- Cardano price continues to struggle higher.
- Whipsaws of price cation inside and outside of the Cloud confuse bulls and bears.
- Cardano is pointing to a third consecutive lower daily close and a third consecutive day below the Cloud.
Cardano price has been a source of frustration for bulls and bears. Multiple setups and positions for bearish and bullish breakouts have been rejected, with the ultimate result being continued constriction in price action. Currently, the price action leans bearish, and it could trigger a fast test to some previous lows.
Cardano price threatens a daily close below the Cloud and bearish pennant
Cardano price shows extremely bearish conditions and a setup that is ripe for a sell-off. Cardano is trading below the Tenkan-Sen, Kijun-Sen, Senkou Span A, and Senkou Span B. Cardano is also trading below the bearish pennant and could initiate the first close below that pennant since its formation.
If sellers can push Cardano price to a close below the bearish pennant, then a push towards the 161.8% Fibonacci retracement at $1.80 is very likely. However, it is entirely possible that $1.80 may get run over and move down to the $1.70 value area instead. Additionally, the volume profile thins out considerably between $2.02 and $1.80.
ADA/USD Daily Ichimoku Chart
Bears, however, should be cautious. Significant momentum remains across the broader cryptocurrency market, and Cardano could easily catch up with its peers and regain a bullish foothold. Moreover, because the price action has been so directionless, it is equally probable that Cardano price will rally higher. From the present position, a close at $2.39 would be sufficient to see Cardano begin another drive towards its prior all-time highs.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
