- Cardano price is finding resistance at a descending channel’s median line.
- ADA price shows a sparse volume pattern within the current uptrend.
- Invalidation of the bearish thesis would come from a breach above $0.70.
Cardano price is signaling a lack of interest. If market conditions persist, bears could push price down in a sweep-the-lows liquidation.
Cardano price faces resistance
Cardano price failed to penetrate through the halfway barrier of a Constance Brown-style parallel trend channel, conveying a lack of bullish confidence. The trend channel median line (which influenced the Cardano price since August 2021) is generally a tool for early buyers to take bottom-catching risks within a downtrend. The bears have consistently rejected the Cardno price at the median line since its first reacquaintance with the ADA price occurred last week near $0.59.
Cardano price currently auctions at $0.52 as the smart contract alternative token hovers between the 8- and 21-day Simple Moving Averages (SMA). Since July 13, Cardano price has managed to rally 48%. Amidst the uptrend rally, the Volume Profile Indicator shows a concerning lack of bullish presence. Although the Cardano price’s uptrend still looks intact, it could be severely weakened and primed for a Smart Money sell-off.
ADA/USDT 1-Day Chart
Traders should be very cautious with the ADA price. Currently, a ‘sweep-the-lows’ event is in the cards, with bearish targets at $0.38 and $0.34. Invalidation of the bearish thesis will be a breach of the upper end of the descending parallel channel currently positioned at $0.70. If the bulls can breach this barrier, a rally towards $1.20 would be on the table resulting in up to a 140% increase from today's current market value.
In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team
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