Cardano Price Analysis: For the past five months, the Cardano price experienced a sustained recovery amid the formation of a rising channel pattern. The support trendline of this pattern has been offering a strong accumulation zone for buyers to grab this altcoin at discounted value. However, with the increasing volatility in the crypto market, the price breached below the long-coming support indicating the ADA price is poised for a longer correction.
Also Read: Bullish Indicators Signal Cardano (ADA) Price Is Ready For A Bull Run
Cardano Price Daily Chart
- A bearish breakdown from the channel pattern may trigger a significant correction in ADA
- Invalidation of the bearish outlook will occur if ADA price surges above the breached trendline before the weekend.
- The intraday trading volume in the ADA coin is $134.4 Million, indicating a 17% loss
The Cardano coin price falling for three consecutive days showcased a breakdown below the channel pattern’s support trendline on May 25th. The buyers losing crucial support gives sellers an additional barrier to pressurize prices to lower levels.
Thus, with sustained selling, the ADA price is likely to slide to $0.3, registering a potential loss of 17%.
However, considering the long duration for which this pattern lasted, the coin price offered a weak(short) breakdown candle with no noteworthy confirmation in volume. Thus, potential sellers must wait for price sustainability below the breached trendline before entering the market.
If the ADA price jumped back above the trendline this week, the breakdown would be considered a bear trap.
Cardano Price Retest $0.3 Support?
A bearish breakdown from the channel pattern has set the ADA price for a significant downfall. The potential drop is likely to hit the next important demand zone which is $0.3. However, the falling price could witness minor roadblocks at $0.348 and $0.324.
- Bollinger Band: An upswing in the lower band of the BB indicator indicates the market sentiment remains sluggish and a better confirmation is needed to project sellers’ dominance.
- Relative Strength Index: The RSI slope potential drop below the 40% mark will reflect aggressive selling momentum in ADA.
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