Jonathan Morgan
Independent Analyst
- 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.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Fed’s Powell calls for proper crypto regulations as Bitcoin price shoots beyond $20,000
Bitcoin price is exploring highs above $20,000 on Tuesday after holding support at $18,800 for nearly four days. Green sprouts are noticeable across the market, led by Uniswap price’s 16.70% move to $6.60
Ethereum price eyes $1,450 as post-Merge tax problems arise
Ethereum price shows a steady climb over the last twelve hours as a direct consequence of the sudden spike in Bitcoin price, which influences the whole crypto market.
XRP price cools off before preparing for its next 100% rally
XRP price shows an interesting development in the lower time frame that hints at a potential retracement. The higher time frame scenario also entertains the possibility of a deeper pullback after its recent explosive move.
MATIC Price Prediction: These signals are key to catching Polygon’s 20% rally
MATIC price continues to consolidate around the range low for more than a week and shows no signs of breaking out. Investors should pay close attention and anticipate the bullish resurgence, which could trigger an explosive move.
Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation
Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.