- ADA price has an interesting volume pattern signaling smart money involvement.
- Cardano price has yet to print a bullish candle of equal value to the May 12 sell-off.
- Invalidation of the downtrend is a breach at $0.714.
Cardano price could merit questioning as the technicals have yet to issue a confident signal despite the considerable uptrend movement.
Cardano price is a tricky chart.
Cardano price could fool traders once again as the price action hints subtly at a future sell-off. Since May 12, the bulls have endured a brutal stranglehold by the bears. On May 15, the bulls tried to promote a rally, but the countertrend retaliation was short-lived. The bears immediately stepped back into the market, defending the bearish trend and wiping out nearly all net positive gains for bullish traders. On May 29, the bulls tried again and saw more success. Analyzing the tug of war price action, it appears the bulls could face exhaustion and may not be able to provide support for much longer.
Cardano price currently trades at $0.64, now 60% higher than the brief $0.40 lows seen on May 12. The volume pattern signals a very strong ramping pattern which usually forecasts a future decline when established in downtrends. The volume pattern is now tapering off as the price increases. If the technicals are correct, the countertrend rally currently on display may be part of wave-four price action, which could send the ADA price as low as $0.20 in the coming weeks.
ADA/USDT 2-Day Chart
The Cardano price is a very tricky chart, and the downtrend has a high chance of being invalidated. The safest invalidation point is a breach above wave one at $0.77. If the invalidation level is breached, the downtrend can be deemed over. The bulls could rally as high as $1.25, resulting in a 95% increase from the current Cardano price level.
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.
Recommended Content
Editors’ Picks
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.