Cardano Price Forecast: ADA eyes 30% decline to flash crash lows of $0.95
|- ADA/USD teases a head-and-shoulders breakdown on the 4H chart.
- The Cardano price risks a sharp drop towards Wednesday’s low of $0.95.
- RSI has room to drop further, as ADA bears sustain below 200-SMA.
Cardano (ADA/USD) is falling for the second straight day on Friday, resuming this week’s bearish streak following Thursday’s temporary reversal.
The fifth most widely traded cryptocurrency 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 is down nearly 40% from its all-time highs recorded at $2.4652 a week ago.
ADA/USD: Poised for another sell-off on a sustained breach of this key support
As observed on Cardano’s four-hour chart, Friday’s sell-off received additional impetus after the 21-simple moving average (SMA) pierced the 100-SMA from above, representing a bearish crossover.
The recent volatile price action has carved out a head-and-shoulders (H&S) formation, with the ADA bears on the verge of confirming a pattern breakdown.
The ADA price awaits a four-hourly candlestick closing below the H&S neckline at $1.4549, which would open doors towards the pattern target measured at $0.95. Wednesday’s flash crash low coincides at that level.
The sellers have found acceptance below the critical 200-SMA at $1.5339, adding credence to a potential move lower while the Relative Strength Index (RSI) looks south towards 30.00.
ADA/USD: Four-hour chart
On the flip side, the pattern neckline support now resistance could offer initial resistance, above which the 200-SMA will get retested.
A sustained break above the latter could re-ignite the recovery towards the downward-pointing 21-SMA at $1.6741.
Ahead of that, the ADA bulls need to scale the $1.50 psychological level convincingly.
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.