Cardano holders worry about a 25% correction ahead of ADA
|- Cardano sees bulls being rejected against the monthly pivot and descending trend line.
- ADA bears can push price action below $1.67 support.
- A 25% correction could unfold as more bulls pull the plug out of their position as support fades.
Cardano (ADA) saw bulls trying to raise a fist and fight the downtrend which had been going on for the greater part of November. Brief support at $1.40 rebooted an uptrend on November 29 that lasted until Thursday. ADA price got a firm rejection, however, and then saw increased selling pressure as more shorters jumped on the downtrend as it broke below $1.67. With no immediate support in the near vicinity, a 25% correction could be in the making before ADA finds some support.
Cardano bears are overtaking price action
Cardano price has failed to successfully begin an uptrend after being continuously rejected by the black descending trend line and the monthly pivot at 1.180. Now bears are looking to be successful in their attempt to penetrate support at $1.67, which if it breaks will see bears run price action lower.
ADA price is now dangling and looks quite bearish, with the first near support from a longer-term orange ascending trend line around $1.39. That would result in a 25% correction and devaluation of its price and would see bulls fleeing the scene.. If the orange trend line should breach, expect the monthly S1 support at $1.20 to trigger bulls to buy the dip with Cardano quoting at a very attractive discount.
ADA/USD daily chart
If bulls were to return – because of some overall tailwind emerging in global markets, say – expect a successful break above the black descending trend line and the monthly pivot to test $1.90 and $2.0. That area will prove to be a hard nut to crack because of two crucial resistances very close to one another. Once through, the price could excel further towards either 2.21 or 2.74.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.