- Cardano price has sliced through the descending triangle’s base at $0.400, triggering a bearish breakout.
- The setup forecasts a 40% correction to $0.241 that could knock ADA down to levels last seen in January 2021.
- A daily candlestick close above $0.482 will create a higher high and invalidate the bearish thesis.
Cardano price shows a lack of willing buyers that have pushed it below significant support, triggering a bearish market structure break. This development has a small window to recovery, failing to do so could result in a sell-off.
Cardano price at an inflection point
Cardano price has produced a descending triangle which is obtained by connecting the four lower lows and three equal lows produced since May 10.
This technical setup forecasts a 40% downswing to $0.241, determined by adding the distance between the first swing high and swing low to the breakout point at $0.400. On October 10, ADA produced a daily candlestick close below this level, confirming a bearish breakout and signaling the breakout of the descending triangle.
If ADA fails to recover above the horizontal support at $0.400, things will continue to deteriorate. Therefore, investors need to pay close attention to the daily candlestick close on October 11
Additionally, Bitcoin price is also looking ready for another leg down, which could help ADA bears reach their destination quicker.
Interested investors can open short positions on the retest of $0.400 and wait for a confirmation via daily candlestick close.
ADA/USDT 3-day chart
On the other hand, if buyers step in at this juncture and trigger a minor recovery above the $0.400 hurdle by producing a daily candlestick close above it, it would indicate a resurgence of bulls.
If this development pushes Cardano price to produce a higher high above $0.482, it will invalidate the bearish thesis for ADA and potentially trigger a further extension of the rally to $0.504.
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.
Recommended Content
Editors’ Picks
Ethereum's supply rises by over 210,000 ETH amid Vitalik Buterin's charity donation
Ethereum is down 0.7% on Thursday following three consecutive days of net inflows across ETH ETFs. Meanwhile, ETH's annual inflation rate has continued trending upward.
Uniswap unveils $2.5 million security pool for v4 upgrade amid most UNI coins held at loss
Uniswap has launched a $2.35 million prize pool for researchers to audit its upcoming v4 codebase. Uniswap v4 will introduce several new features, including on-chain limit orders and flash accounting.
FLOKI down following partnership with Premier League club Nottingham Forest
Floki Inu (FLOKI) is down 1.5% on Thursday after revealing its partnership with Premier League football club Nottingham Forest for the 2024/2025 football season.
Justin Sun stakes Ether with Lido, says TRON Protocol offers six times higher yield at nearly 25%
Justin Sun, founder of TRON and crypto expert compared the staking yield on Ethereum and TRON in a recent tweet. Sun stakes his Ethereum with Lido Protocol and earns a 4% yield on his holdings.
Bitcoin: Signs of weakness persist
Bitcoin (BTC) trades above $58,000 on Friday after after testing and failing to overcome the resistance level around $62,000 earlier in the week. The risk-on mood returned to markets this week, Marathon Digital added 4,141 BTC worth $249 million to its holdings and the US SEC approved a MicroStrategy leveraged ETF, potentially giving investors more exposure to Bitcoin.