- Cardano price could provide a buy opportunity at lower support levels before the bulls try to reverse the period of sluggish performance.
- A key technical indicator suggests that there are more sellers than buyers in the market.
- If ADA slices above $1.39, a 40% climb will be on the radar.
Cardano price could tag lower levels before ADA bulls prepare to reverse the period of underperformance. The Ethereum killer could slide toward the January 10 low at $1.07 before falling toward the lower boundary of the prevailing chart pattern at $1.04.
Cardano price weakens as bearish momentum increases
Cardano price is forming a falling wedge pattern on the daily chart, as ADA continues to create lower lows and lower highs. The Arms Index (TRIN) indicates that there are currently more sellers than buyers in the market, suggesting that the token could fall lower to test crucial levels of support before a recovery is in the offing.
The first line of defense for Cardano price is at the December 4 low at $1.18. ADA may discover another foothold at the June 23 low at $1.10 before the token falls toward the January 10 low at $1.07.
Additional selling pressure may push Cardano price lower to tag the lower boundary of the governing technical pattern at $1.04.
However, if a spike in buy orders occurs, Cardano price may aim higher to tag the 61.8% Fibonacci retracement level, coinciding with the August 3 low at $1.26. ADA will face further resistance at the 21-day Simple Moving Average (SMA) at $1.30, then at the 50% retracement level at $1.33.
Additional obstacles may emerge at the 50-day SMA at $1.35 before Cardano price tags the upper boundary of the prevailing chart pattern at $1.39, coinciding with the 38.2% Fibonacci retracement level.
ADA/USDT daily chart
Investors should note that a slice above the aforementioned line of resistance may put a 40% climb toward $1.95 on the radar, a bullish target given by the governing technical pattern.
However, before the optimistic target could be reached, ADA must also break above the 23.6% Fibonacci retracement level at $1.47, the 100-day SMA at $1.69 and the 200-day SMA at $1.81.
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
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.