The price of Cardano has been decreasing for over a month, coinciding with Bitcoin‘s price stabilization around $68,000. After reaching a high of $0.8, the ADA price dropped to a support level of $0.57, representing a 28.5% decrease. This correction has taken the shape of a head and shoulders chart, suggesting that the Cardano coin may experience additional price decreases.
Cardano Price at the Mercy of a Key Technical Threshold
When the market mood is generally negative (in correction mode), the Cardano trend exhibits a shift towards bearish control. The daily price chart reveals that the ADA price trend forms a classic head and shoulders pattern, with the neckline at $0.567. Typically, this chart configuration appears near market peaks due to increased selling pressure in the market.
Despite the previous bearish signs, the strong backing from buyers causes ADA‘s altcoin price to rebound, potentially indicating a robust uptrend ahead. The unraveling of the bearish pattern allows for a double-bottom opportunity as the price approaches the long-term support trendline.
At present, the price of ADA is $0.58, marking a 1.93% decrease on the day. This downturn suggests an uptick in supply, but the appearance of a “tail” in the price chart may indicate an impending bullish turnaround.
The neckline of the bearish pattern for Cardano aligns with its support trendline and the $0.567 mark. This intersection represents a significant level for Cardano, which may determine the direction of its upcoming price movement.
If the price of ADA increases significantly due to a double bottom reversal among buyers, it may reach a value of $0.68. Conversely, if the price falls below the crucial support level, the market could experience a 20% decrease in value, leading to a price of $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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2024-04-10 21:59