- cardano The price seems to be giving a false bullish signal with price action supported at $0.415.
- The price shows that the 55-day Simple Moving Average is acting as a trendline from the upside.
- A bearish ‘bearish triangle’ could become visible on the price chart, which will trigger a drop towards the $0.075 level.
Cardano bulls may have made the wrong move, believing the price to be supported at a historical level of $0.415. If this error is indeed correctly predicted, it can be seen that the 55-day simple moving average came from the top and was limited by the price action of the previous weeks.
Completing this setup could result in a break below $0.415 on the downside, falling as low as another support at $0.075 for a total loss of more than 80%.
Cardano Investors Should Beware
This week is signaling a false message to traders as Cardano prepares for a bullish move where price action is supported at $0.415. However, the current risk comes from the upside where the 55-day SMA has fallen sharply, it has already closed the top of the previous two weeks and will do so again this week. As this price pressure builds to the downside, it looks like it’s only a matter of time before the pressure on bulls buying at $0.415 and higher builds up.
Things could change if the bulls hold their moves together and can withstand the hard pressures from this $0.415 level. If the next week’s trading is done with a weaker dollar outlook, there could be more room for upward movement and the bulls could have a chance to pierce the 55-day SMA as a bearish boundary. A full completion will result in a swing trade with price action on ADA rising to $0.715.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.