Why Cardano price floating around $0.30 is not a good look

Cardano price is in a conflicting situation. While hopes for a Santa rally linger amongst crypto enthusiasts, ADA's monthly performance points to further negative returns. If the bulls do not soon pull off a stunning rebellion, Cardano price auctioning around $0.20 will be imminent. 

Cardano price could be in trouble

Cardano price has the community watching closely as the price hovers a few ticks away from the newfound monthly low at $0.295. During the last weekend of November, the bulls failed several times to sustain support above the 8-day exponential moving average (EMA). During the New York session on Monday, November 28, the bears forged a firm rejection from the EMA. As the price hovers below the moving average, traders are forced to ask a pivotal question. What price are the bears truly aiming for?

Cardano price currently auctions at $0.306. The rejection from the 8-day EMA shows an uptick in transactions compared to the previous weekend. The rejection was simultaneously at a triangle apex that manifested earlier in the month. Elliott Wave practitioners utilize reactions of a triangle apex to gauge whether or not a trend will continue. In Cardano’s case, the bulls’ failure to produce a daily closing candlestick above the apex means the downtrend will likely continue. 

ADA/USDT 1-Day Chart

Considering these factors, the Cardano price may only be able to sustain support around the current price levels for a short period. If market conditions persist, the Cardano price will produce a bearish engulfing candlestick on the monthly time frame. For classical price action traders, the bearish gesture would be a clear exit from the market signal. A key level of interest would be the 2020 liquidity zone near $0.27. 

The bulls will need to definitively settle above the triangle apex at $0.319 to justify a countertrend rally., If the scenario occurs, the bulls could prompt a countertrend spike into the upper bounds of the triangle's trading range near $0.355. The move would create a highly probable potential for a 16% countertrend rally in December.