Cardano (ADA) price He has been unable to achieve the rise he wanted for a while. While the bears have been selling for a while, Cardano price looks set to continue its ‘downtrend’ on the prevailing chart pattern. A technical indicator has signaled a ‘local top’ which indicates that momentum is turning to the downside.
Cardano price has formed a ‘descending parallel channel’ on the daily chart as ADA consistently records lower highs and lower lows.
The Arms Index (TRIN), which measures overall market sentiment, shows a significant increase in sellers relative to buyers and a selling pressure. The Momentum Reversal Indicator (MRI) signaled a local top on the January 20 candlestick, bolstering the bearish forecasts.
Cardano (ADA) The first level of support for the price is located at the June 23 low of $1.10. If the selling pressure continues to build, ADA could test the lower bound of the current technical pattern at $1.00 as a support level.
Traders should keep in mind that if Cardano price drops below the aforementioned support, there is a 36% drop on the radar towards $0.64, the bearish target given by the prevailing chart pattern.
ADA will look for two more supports, first at the February 22 low of $0.81, and then the February 8 high of $0.72. If these support levels also fail, the bears could push the price down to $0.64.
However, if the bulls manage to reverse the underperformance period, Cardano price The 21-day Simple Moving Average (SMA) will face resistance at $1.28 where the 50-day SMA and the middle border of the governing technical pattern meet.
An increase in buying could push Cardano price higher towards the upper boundary of the current chart pattern at $1.61 to coincide with the 100-day SMA.
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.