$ADA Price at Risk of Major Correction as Sellers Break Key Support

Cardano Price Analysis: Over the past five months, the ADA price maintained a bullish trend under the influence of a rising channel pattern. Using the pattern’s support trendline as a major accumulation zone the buyers marked this year’s top at $0.4617. However, amid the recent sell-off in the crypto market, the Cardano coin showed a massive breakdown below this pattern indicating a sign of trend reversal. 

Also Read: Cardano Chief Asks Crypto Industry Players to Unite After SEC’s Lawsuit on Binance

Cardano Price Daily Chart

• Support trendline breakdown set Cardano price for 15% downfall.
• The potential crossover between the 50-and-100-day EMA could increase pressure among traders
• The intraday trading volume in the ADA coin is $283 Million, indicating an 22% gain

Source- Tradingview

On June 5th, the cryptocurrency market encountered a substantial downturn in the wake of a recently filed lawsuit targeting Binance, which is recognized as the world’s largest cryptocurrency exchange, and its CEO Changpeng “CZ” Zhao. As a result, the ADA price showed a 7% drop on the same day and gave a decisive breakdown from the support trendline of the channel pattern.

This breakdown would turn major support of buyers’ and sellers’ weapons to pressure the coin price lower. Today, the Cardano price projected a 0.5% fall but a long-wick rejection attached to the daily candle indicates the buyers are trying to regain trend control.

Thus, in the coming days, this altcoin will retest the breached trendline as potential resistance and check if sellers can maintain supply pressure. The potential downfall could plunge the price to the first target of $0.3.

Will Cardano Price fall back to $0.3?

The high momentum breakdown from the long-coming support trendline has set the ADA price for a significant downfall. With sustained selling, the sellers could push the price to the next major support with $0.3. During the potential downfall, the coin price may witness a minor hindrance at $3.2

• Relative Strength Index: The daily RSI slope dives into the oversold region, indicating the price could consolidate below the trendline for a few trading days before continuing its prevailing downtrend.
• Exponential Moving Average: The recently breached daily EMAs(20, 50, and 100) now accumulated at the overhead trendline increase the number of hurdles buyers have to overcome to get an upper hand.