Published 31 mins ago
Cardano Price Analysis: With the increasing selling pressure in the crypto market, the Cardano coin price gave a bearish breakdown from the neckline support of the head and shoulder pattern. This famous bullish reversal pattern is usually spotted at market tops and increases underlying selling momentum in a coin. From the breakdown point near $0.38, the altcoin plunged 3.5% and is currently trading at $0.367. Here’s how traders may grab a short-selling opportunity from this pattern.
Key Points:
- A bearish breakdown from the head and shoulder neckline encourages sellers to 18% fall
- The ADA price plunged below the daily EMAs(20, 50, 100, and 200) indicating a potential rally may face multiple resistance.
- The intraday trading volume in the ADA coin is $272.5 Million, indicating an 8% gain
Source- Tradingview
Today, the Cardano price is 0.38% and shows a green Doji candle in the daily. This candle of uncertainty formed after a downfall hints the ADA price may witness a minor bullish pullback to retest the breached neckline of the H&S pattern.
This retest will validate the price sustainability below the breached level of $0.38 and offer a short-selling opportunity to traders. Under ideal conditions, H&S pattern breakdown offers a potential fall of the same distance between the head peak and neckline.
Also Read: Top Web 3 Phones And Their Specifications
Thus, the ADA price is likely to tumble 18% and hit the March month bottom support of $0.3.
Moreover, in the daily chart, a new resistance trendline is carrying the ongoing correction phase. Therefore, a breakout above this trendline will invalidate the bearish thesis and assist buyers to reclaim higher grounds.
Technical Indicator
Relative Strength Index: The daily RSI slope dives deeper into the bearish territory indicating the high bearish momentum in the market.
Exponential Moving Average: A potential bearish crossover between the 20-and-50-day EMAs may offer a sell signal to market participants.
Cardano Coin Price Intraday Levels
- Spot price: $0.365
- Trend: Down
- Volatility: Medium
- Resistance level- $0.4 and $0.42
- Support level- $0.346 and $0.32
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/cardano-price-analysis-sellers-in-control-may-pressurize-ada-price-for-18-fall-sell-or-hold/