Cardano Price Forecast: ADA price forms deadly pattern, suggesting further correction to $0.08

The daily price charted the bearish engulfing pattern and has broken below the 200-day SMA ($0.0943).
The IOMAP shows a moderate support wall at $0.082 on the downside.

After finding support at the $0.076 support wall, the price bounced up to $0.11 between September 23 and October 22. Since then, the price has dropped to $0.091. This Monday, the ADA daily price charted the bearish engulfing pattern and broke below the 200-day SMA ($0.0943). A further spike in Cardano's selling pressure could see it drop to $0.08 or $0.07.

ADAUSD daily chart

ADA/USD daily chart

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) helps us visualize strong support and resistance areas. As per the IOMAP, there is a lack of healthy support walls on the downside. The only notable support lies at the $0.082. If the bears manage to take the price below that, it will go down to the $0.076 support line.

ADA IOMAP

Can the bulls flip the situation around?

The bulls can change the narrative by regaining the 50-day SMA ($0.098) and using it as support to aim for the 100-day SMA ($0.11). However, the IOMAP shows us that the strongest resistance barrier lies at the 50-day SMA. This barrier looks strong enough to absorb a tremendous amount of buying pressure.

Key price levels to watch

ADA bears will aim to break below the $0.082 support wall and go down to the $0.076 line.

The bulls will aim to conquer the 50-day SMA ($0.098). However, this barrier is solid and will require a lot of work to flip around.

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