Cardano's price has fallen below the lower trend line of a symmetrical triangle pattern that extends back to the May 19 low. It is a negative development and places the spotlight on the viability of the $1.40 support level engineered by the 2018 high. The green token, like other altcoins, is positioned at a critical threshold level that will have ramifications for weeks.
Today, Cardano ADA is the 5th largest cryptocurrency with a market capitalization of $46.73 billion. It is sandwiched between BNB and Dogecoin. The decentralized, proof-of-stake blockchain competes with Ethereum, and NBC recently categorized Cardano ADA as the “most significant proof of stake cryptocurrency on the market.”
During the development of the ADA symmetrical triangle pattern volume has declined, and the correlation to Bitcoin BTC has remained tight. However, over the last few days, the trade volume has turned higher, and the close correlation with Bitcoin BTC has tapered. Combining the metrics with the triangle’s resolution to the downside on June 11 proposes that Cardano ADA price tendencies are becoming token-specific and may point to a convincing break of the omnipresent $1.40.
Supplementing the tendency towards the overthrow of Cardano ADA price is the weight of a declining 50-day SMA at a price of $1.60, the minor trend line from the June 3 high at $1.56 and the flattening 10-week SMA at $1.50.
A daily close below $1.39 is the initial warning that Cardano ADA price has bearish intentions and may be seeking a decline to the May 19 low price of $0.97. If the weakness leads to a daily close below the May 29 low of $1.33, investors should prepare for a sizeable decline in the days ahead.
Obvious targets are the May 23 low price of $1.04 and the May 19 low of $0.97, but it is recommended that investors ready for a sweep below the April 22 low of $0.90, pronouncing a 35% decline from the imposing $1.40 support level.
It will take a close above the 50 twelve-hour SMA at a price of $1.60 to disqualify the cautious Cardano ADA price outlook and reveal a tactical opportunity for investors to trade a rally to the triangle’s upper trend line level at $1.84.
Cardano is one of the compelling blockchain stories in the cryptocurrency market, and Cardano's ADA price has capitalized on it from late December 2020 to the May high. Still, like other higher profile altcoins such as Polygon MATIC, investors need to question if the story has been priced into the digital asset.
Technical indicators are tilted ADA bearish, and Cardano price action is not instilling confidence. ADA price needs to prove itself moving forward before investors allocate capital, whether to the short side and long side.
Shiba Inu price decouples from the bellwether cryptocurrency
0 Comments