- Cardano price has established a new low to start the week.
- Bears have added further selling pressure establishing a down-bar during the New York session.
- A bullish engulfing above $0.883 will be the first signal to invalidate this thesis.
Cardano price (ADA) starts the week with negative signals flashing as bears have pushed it lower during the New York session. The chart suggests that bulls are beginning to lose faith in the relief rally which occurred based on fundamentals.
Cardano price should concern investors
Cardano price is not exempt from weekly opens that are standard trendsetters in the crypto arena. Bears managed to print an up bar on Sunday's late night Japan session, but unfortunately, the bullish engulfing candle has some mixed signals attached to it on the 12-hour chart.
For one, the bullish engulfing found support at $0.7761, which is the lowest low Cardano price has traded at all month. Secondly, the bears have flexed their power on ADA price, establishing a down bar during the New York session. Signals like these are usually indicators of weak hands in the market. Intraday traders should be aware that New York and London sessions are usually where smart money tends to operate most.
With that being said, ADA price may be due for some more downside as the early bulls supporting the $0.776 low are likely to be challenged during the week, with up to a 20% drop to targets of $0.67 and $0.62.
ADA-USD 8-Hour Chart
Despite the bearish signals weighing over Cardano price, traders should keep in mind that the amount of hype circling Cardano’s price is likely to come with fake-outs and increased volatility.
The first invalidation signal will be a bullish engulfing candle above the current New York session high at $0.813. Should this happen, bulls will likely produce more bullish momentum towards targets of $0.85 and $0.92, up to 20% above ADA price’s current level.
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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
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.
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.