NewsletterHere’s How Volatile Market Puts Cardano Coin at Risk Of 8% Fall
Amid the V-shaped recovery in the daily time frame chart, the Cardano coin price shows the formation of a falling wedge pattern. This chart structure is characterized by two converging trendlines that form a wedge shape and lead a temporary rally in an asset. Thus, in core concept, this pattern in some of the famous bearish continuation structures signals an upcoming downfall.
Key Points:
- A potential pullback may plunge the coin price to $0.35 support, followed by $0.323
- A minor correction phase could recuperate the bullish momentum for a sustained recovery in the long term
- The intraday trading volume in the ADA coin is $275.4 Billion, indicating a 24% gain.
Source- Tradingview
In theory, as the trendlines converge during the wedge pattern formation, the price action becomes more confined, indicating a potential trend reversal from bullish to bearish. Typically, this pattern is confirmed when the price breaks below the lower trendline, signaling a trend reversal and a potential sell signal for traders.
By press time, the Cardano coin price trades at $0.394 with an intraday gain of 0.5%. However, on February 6th, the coin price breached the lower trendline, with a daily candle closing below it.
Also Read: Top Crypto Discord Servers/Groups Worth Joining In 2023
This breakdown will intensify the selling pressure and trigger a significant downfall in ADA price. The post-breakdown fall could rumble the price 18% lower to hit the $0.323 mark. However, this potential correction can be considered a temporary retracement to replenish the bullish momentum.
However, the ADA price sustainability above $0.323 is important to maintain an overall bullish trend.
Technical Indicator.
Relative strength index: contrary to the rising price action, the falling RSI slope projects the exhausted bullish momentum. This bearish divergence bolsters the possibility of a bearish pullback.
EMA’s: the 20-day EMA dynamic support may assist buyers in undermining the correction theory.
Cardano Coin Price Intraday Levels
- Spot price: $0.384
- Trend: Bullish
- Volatility: Medium
- Resistance level- $0.438 and $0.522
- Support level- $0.382 and $0.323
- Legendary Trader Peter Brandt Warns Deeper Bitcoin Price Crash Below $58K
- Bitcoin ETFs See Worst Month Since February With $3.5B Outflows as BTC Slumps Again
- Crypto Market Crash Erases Fed Rate Cut-Driven Bitcoin, ETH, XRP, SOL, ZEC Gains
- Sony Bank Joins Ripple, Circle to Launch USD-Pegged Stablecoin in the U.S. by 2026
- XRP News: Ripple Broadens Payment Offerings in Singapore with MPI License Expansion
- Is Pepe Coin Price at Risk After Forming This Bearish Pattern?
- Bitcoin Price Drops to $87K in a Rapid Crash: What Sparked the Sell-Off?
- Will Fusaka Upgrade Push Ethereum Price to New Highs?
- Bitcoin Price Poised for a $100k Run as Coinbase Premium Turns Positive
- XRP Price Prediction: Why XRP Could Rally to $3 This Week?
- Ethereum Price Prediction 2025: How High Can ETH Go by Year-End?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
