Cardano Price Analysis: ADA could slide to $0.14 before a major upswing

Cardano is trading under growing resistance following rejection at the triangle pattern’s descending trendline.
An upswing is expected to kick in at $0.14, with support provided by the 200 SMA and the ascending trendline.

Cardano is hunting for formidable support after hitting yet another barrier at $0.16. A breakdown that seems to have been validated is likely to test support at $0.14 before giving way for a significant rebound.

Cardano prepares for a short-term downswing

The aspiring smart-contract token is trading at $0.15 at the time of writing. The 100 Simple Moving Average is limiting price movement immediately on the upside. Simultaneously, overhead pressure is intensifying after the rejection suffered at the descending trendline of the symmetrical triangle.

Close support is envisaged at the 50 SMA, but if broken, the bearish price action may test the anchor at $0.14, as highlighted by the ascending trendline in conjunction with the 200 SMA.

The Moving Average Convergence Divergence, often referred to as the MACD, adds credence to the pessimistic outlook.

This technical indicator follows the path of a trend and measures its momentum, and it seems to be flipping bearish within the same time frame. As the 12-day exponential moving average crossed under the 26-day EMA, the odds for a bearish impulse increased significantly.

ADA/USD 4-hour chart

Robust support is anticipated at $0.14, as explained above. This will result in a considerable rebound to highs beyond $0.16. Trading above the symmetrical triangle pattern may place Cardano in a trajectory for gains aiming for $0.18 and $0.2, respectively.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.