Story Highlights:
- A rising trendline is the driving force behind the Cardano’s mid-term upward trend.
- The confluence at $0.567 is a strong area of interest to buyers.
- ADA’s intraday volume is $20,6 Billion. This represents a loss of 40%. Since over a week, Cardano’s price is undergoing a constant correction in the context of the Bitcoin price consolidating around $68000. ADA’s price fell 28.5 percent from its peak at $0.8 to the $0.57 level of support. The Cardano price is now poised to correct further.
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Cardano price at the mercy of a key technical threshold
With the overall market sentiment in the correction zone, the Cardano trend showcases a bearish takeover. The daily price chart displays the ADA price trend making a head and shoulder pattern with the neckline at $0.567. In theory, this chart pattern is commonly spotted at market top reflecting a surge in market selling pressure.
However, the bullish support leads to a bounce back in the altcoin and projects a potential high momentum uptrend. As the bearish pattern fails to play out, the ADA price offers a double-bottom possibility as it tests the long-coming support trendline.
Currently, the ADA price trades at $0.58 with a 1.93% intraday drop reflecting an increase in overall supply pressure. However, the lower price rejection evident by the tail formation teases a potential bullish reversal.
The bearish pattern neckline coincides with the support trendline and the $0.567 level. This reflects a pivotal point at play for Cardano that could set the future price trend.
If the buyers manage to uplift the prices with a double bottom reversal, the ADA price could hit the $0.68 mark. However, a downfall below the critical support could plunge the market value by 20% to hit $0.46.
Technical Indicator:
- Relative Strength Index: The daily RSI slope to 41% indicates the sellers are leading the ADA’s current price movement.
- Exponential Moving Average: The fast-moving 20-day EMA acts as dynamic resistance to bullish bounces indicating the near-term trend is bearish.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.