ADA/USD pair is falling for the second straight day on Friday, resuming this week’s bearish streak following Thursday’s temporary reversal pattern.
The fifth most widely traded Cardano ADA is looking to retest the $1 mark, as the crypto space remains in a sea of red after China intensified its crackdown on cryptocurrencies.
Cardano's price is down nearly 40% from its all-time highs recorded at $2.4652 a week ago.
As observed on Cardano’s price four-hour chart, Friday’s sell-off received additional impetus after the 21-simple moving average pierced the 100-SMA from above, representing a bearish crossover.
The recent volatile price action has carved out a head-and-shoulders formation, with the ADA price bears on the verge of confirming a pattern breakdown.
The ADA awaits a four-hourly candlestick pattern closing below the head-and-shoulders neckline at $1.4549, which would open doors towards the support pattern target measured at $0.95. Wednesday’s flash crash low coincides at that level.
The sellers have found acceptance below the critical support 200-SMA at $1.5339, adding credence to a potential move lower while the Relative Strength Index looks south towards 30.00.
On the flip side, the pattern neckline support level now resistance could offer initial resistance, above which the 200-SMA will get retested.
A sustained break above the latter could re-ignite the price recovery towards the downward-pointing 21-SMA at $1.6741.
Ahead of that, the ADA price bulls need to scale the $1.50 psychological level convincingly.
0 Comments