Cardano Price to $0.25? Monthly Support Breakdown Signals Major Correction

With the increasing selling pressure in the crypto market, the Cardano price struggled to rebound from the $0.3 psychological support. Despite several attempts, the buyers’ failure to carry a sustained reversal indicates weakness in bullish momentum. Thus, the overhead supply led to a breakdown below the $0.3 support indicating the ADA price is poised for extended downfall. 

Also Read: Cardano Founder Reveals Why He Owns No Public Crypto Addresses

Cardano Price Daily Chart

• A breakdown below the long-coming support trendline sets the ADA price for a 6.5-11.2% fall
• A negative alignment between the daily EMAs(20, 50, 100, and 200) shows the overall is bearish
• The intraday trading volume in the ADA coin is $299.2 million, indicating a 55% gain.

Source- Tradingview

After nearly three weeks of consolidation above $0.3, the sellers managed to breach this support on August 2nd. With this breakdown, the Cardano price also entered the range of the last swing high indicating an early sign of an extended correction.

With a 1.47% loss today, the ADA price offers a suitable follow to this aforementioned and also pierced the ascending trendline which supports the coin price recovery for the past seven weeks. If the prices show sustainability below the breached trendline, the sellers would gain an additional barrier to pressurize buyers.

With sustained selling, the eighth largest cryptocurrency which currently trading at $0.294 could tumble 6.25% to retest $0.276, followed by $0.26 or $0.25.

Can ADA Buyers Still Manage to Reclaim $0.3?

While things look bearish for the Cardano coin, if the coin price manages to prevent a daily candle from closing below the breached trendline, the buyers may use this support to counterattack. The demand pressure evident by the long-tail rejection candle would bolster a bullish reversal. However, the buyers would get a better confirmation of recovery, if the coin price breaks above the high of August 2nd which is $0.312.

• Exponential Moving Average: The coin price trading below the daily EMAs(20, 50, 100, and 200) indicates the traders will face the least resistance on the downside.
• Direction Moving Average: The DI+(blue) and DI-(orange) slope near a bearish crossover could signal increased selling pressure in the market.