Cardano Price Analysis: Sellers in Control may Pressurize ADA Price for 18% Fall; Sell or Hold?
Cardano Price Analysis: With the increasing selling pressure in the crypto market, the Cardano coin price gave a bearish breakdown from the neckline support of the head and shoulder pattern. This famous bullish reversal pattern is usually spotted at market tops and increases underlying selling momentum in a coin. From the breakdown point near $0.38, the altcoin plunged 3.5% and is currently trading at $0.367. Here’s how traders may grab a short-selling opportunity from this pattern.
Key Points:
- A bearish breakdown from the head and shoulder neckline encourages sellers to 18% fall
- The ADA price plunged below the daily EMAs(20, 50, 100, and 200) indicating a potential rally may face multiple resistance.
- The intraday trading volume in the ADA coin is $272.5 Million, indicating an 8% gain
Source- Tradingview
Today, the Cardano price is 0.38% and shows a green Doji candle in the daily. This candle of uncertainty formed after a downfall hints the ADA price may witness a minor bullish pullback to retest the breached neckline of the H&S pattern.
This retest will validate the price sustainability below the breached level of $0.38 and offer a short-selling opportunity to traders. Under ideal conditions, H&S pattern breakdown offers a potential fall of the same distance between the head peak and neckline.
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Thus, the ADA price is likely to tumble 18% and hit the March month bottom support of $0.3.
Moreover, in the daily chart, a new resistance trendline is carrying the ongoing correction phase. Therefore, a breakout above this trendline will invalidate the bearish thesis and assist buyers to reclaim higher grounds.
Technical Indicator
Relative Strength Index: The daily RSI slope dives deeper into the bearish territory indicating the high bearish momentum in the market.
Exponential Moving Average: A potential bearish crossover between the 20-and-50-day EMAs may offer a sell signal to market participants.
Cardano Coin Price Intraday Levels
- Spot price: $0.365
- Trend: Down
- Volatility: Medium
- Resistance level- $0.4 and $0.42
- Support level- $0.346 and $0.32
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