• Cardano price may close with the fourth Doji pattern in the last five weeks.
  • A steady balance between market timers and long-term holders fills chart with contradictions.
  • ADA needs institutional investor commitment to overcome 2018 high.

Cardano price is poised for a meaningful decline in the coming weeks in light of the price compression and significant overhead resistance. 

Cardano price contradictions demand a willingness to make difficult investment decisions

ADA consolidated the rapid advance in 2021 in a textbook symmetrical triangle during February and March. It was activated last week but failed for the fourth time to hold a breakout above the 2018 high at $1.40. The failures above the all-time high of 2018 emphatically show long-term holders are using the level to liquidate positions.

Multiple failures in one direction more often than not result in sharp moves in the opposite direction, and that is the outlook for ADA. Speculators using a “buy the dip” investment approach this past weekend are going to be burned.

The first level of support for a decline is the confluence of the 38.2% Fibonacci retracement of the February rally at $0.94 with the March low at $0.95. Subsequent support is the 50% retracement at $0.81, yielding a 36% loss from the current price. If the losses rapidly accumulate, there is the potential to test the 61.8% retracement at $0.69.

ADA/USD weekly chart

ADA/USD weekly chart

To negate the bearish thesis, ADA needs to close above last week’s high at $1.57. It would signify that the previous overhead resistance has been overcome, and the altcoin is ready to leave the 2018 high behind. The 161.8% extension of the March correction is the first upside target at $2.08.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP