Here’s Why Cardano Price Is Threatened For 15% Correction

The Cardano coin price witnessed a sustained recovery for the first four weeks of 2023. from the January low of $0.243, the bull run rallied 66.6% to hit a psychological resistance of $0.4. Amid this recovery, the coin price gave a bullish breakout from the seven-month-long falling wedge pattern. Though this breakout set the market sentiment for a significant bullish run, the price analysis shows a bearish threat is lurking on Cardano.

Key Points:

• The formation of a rising wedge pattern indicates an upcoming correction in the Cardano coin
• The daily RSI exited the overbought territory, indicating the coin price is trying to stabilize from the prior bull run
• The intraday trading volume in the ADA coin is $559.5 Billion, indicating a 16% loss.

Source- Tradingview

Amid the last two weeks of recovery, the Cardano coin price shows a formation of a rising wedge pattern. This pattern is visible when the asset price rallies within two converging trendlines but struggle to form a longer swing high. 

In theory, this is one of the famous bearish continuation patterns, which intensifies the selling pressure upon the breakdown of its support trendline. By the press time, the ADA price trades at $0.37 and is down 4.5% on the intraday level. 

Therefore, having a higher possibility that the 4-hour candle closes below this pattern’s support trendline, the sellers will can an additional resistance level to tear down buyers’ motive.

Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023

Considering this bearish pattern size, a bearish breakdown would trigger a potential correction of 15% to revisit the $0.325 support.

Anyhow this temporary retracement could be beneficial for the overall bullish recovery as the prices will validate their sustainability above the newly reclaimed levels.

Technical Indicator.

RSI(daily): for rising prices, a falling RSI slope indicates weakness in bullish momentum. Thus, a bearish divergence from this indicator projects a higher possibility of a bearish pullback.

EMA’s(daily): an upward trend in 20, 50, and 100 EMA could offer dynamic support to ADA price.

Cardano Coin Intraday Price Levels

• Spot price: $0.38
• Trend: Bearish
• Volatility: High
• Resistance level- $0.4 and $0.426
• Support level- $0.355 and $0.33-$0.326