Cardano price could shed more weight, but panicking investors can exit their positions here
- Cardano price has been in a downtrend since the August 14 swing high at $0.594.
- The 23% sell-off will likely undergo a relief rally to $0.494 or $0.510 before resuming its downward move.
- A daily candlestick close that flips the $0.609 hurdle into a support floor will invalidate the bearish thesis.
Cardano price has seen three consecutive down candlesticks denoting an aggressive seller-dominated regime. This massive sell-off seems to originate from the influential lead crypto Bitcoin and is affecting many altcoins.
Cardano price and potential relief rally opportunity
Cardano price has crashed 23% over the last four days and is currently trading at $0.470. The recent sell-off has pushed ADA to slide below the midpoint of the $0.380 to $0.609 range at $0.494.
A stabilization of selling pressure for big crypto could see altcoins undergo a relief rally, which could potentially push Cardano price higher. In such a case, ADA is likely to revisit the $0.494 hurdle, but in some cases, ADA might rally more concertedly and retest the $0.525 resistance level.
This relief rally will provide a haven for investors to get out of their loss-making positions, especially if they believe the market will crash further.
If the sell-off does not stop, Cardano price could visit the $0.419 to $0.434 support floors. These barriers could potentially pause the ongoing bearish momentum and give holders an opening for a much-needed relief rally.
ADA/USDT 1-day chart
On the other hand, if Cardano price manages to undo the losses seen over the last four days, it will signal a resurgence of buyers. However, if ADA can flip the range high at $0.609 into a support floor, it will invalidate the bearish thesis.
In such a case, Cardano price could attempt an upswing to $0.749.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
