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ADA price Prediction: On April 13th, the Cardano coin price gave a massive breakout from the resistance trendline of an inverted head and shoulder pattern. This breakout was supposed to accelerate the buying pressure for a further rally but amid the recent sell-off in the crypto market, the buyers couldn’t sustain above the breached trendline. Thus, the coin price plunge below the trendline and $0.4 has created a bull trap scenario which could force liquidation of the hasty buyers with a narrow stop loss and bring more selling orders into the market.
Key Points:
- A V-top reversal in Cardano price reflects aggressive selling among market participants.
- To absorb the rising buying the ADA price may pullback to $0.4 before the correction phase continues
- The intraday trading volume in the ADA coin is $367.5 Million, indicating a 16% loss
Source- Tradingview
The Cardano price has witnessed significant correction since last week, recording a 15.65% downfall, a coin dropped from the $0.46 to the $0.39 mark. Today, the altcoin is down 1.11% and trying to sustain above the $0.378 local support.
The aforementioned support backed by 38.2% Fibonacci retracement and 50-day EMA forms a high area of interest that could assist buyers to reaccumulate. Thus, this bullish reversal may surge the coin price by 5% to retest the breached trendline and $0.4 level as potential resistance.
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If the selling persists, the coin price may form a new lower higher at $0.4 and prompt the resumption of a bearish crossover. A potential breakdown below $0.378 will tumble the ADA price by 10% to reach $0.35.
Technical Indicator
Moving Average Convergence/Divergence: A sell-signal from the bearish crossover of the MACD(blue) and signal(orange) line encourages a longer correction for ADA price.
Fibonacci Retracement Indicator: a correction phase to the 50% FIB level at $0.35 will still be considered a healthy retracement which may keep the odds of bull trend resumption higher.
Cardano Coin Price Intraday Levels
- Spot price: $0.39
- Trend: Bullish
- Volatility: Medium
- Resistance level- $0.4 and $0.46
- Support level- $0.38 and $0.35
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.
Source: https://coingape.com/markets/ada-price-prediction-cardano-price-faces-10-downside-risk-if-buyers-lose-this-key-support/