TL;DR Breakdown
- Cardano price could drop as much as 17 percent after critical support is breached at $1.30
- ADA price currently undergoing a descending triangle to setup a bearish outlook
- Trade levels currently sit around the apex of triangle at $1.24
Cardano price analysis for the day shows a significant bearish outlook, as price dropped past the critical support level at $1.30 over the past 24 hours. Dropping over 4 percent, ADA price recorded a low of $1.22 on the day. The trend seen eclipses that of a descending triangle, where price currently sits just at the apex and primed for a 17 percent crash. Any movement to take price below $1.20 could trigger the crash, where the next support level will be found at $1.15.
The larger cryptocurrency market suffered greater declines over the past 24 hours, with the exception of a few Altcoins rising. Bitcoin dropped over 2 percent to sit just above $46,000 with Ethereum decreasing 3 percent as well. Solana suffered a 7 percent drop, taking price down to $171.59, with Polkadot declining 6 percent to $23.84. Ripple, Dogecoin and Terra showed movements upwards, with increments of around 2 percent each.
ADA/USD 24-hour chart: Descending triangle pattern forms with lowering RSI
On the 24-hour chart for Cardano price analysis, a descending triangle pattern can be seen forming with a 17 percent decline on the forecast. The extent of the decline is obtained by summing the distance between the first swing high and swing low to the breakout point of $1.20. The Relative Strength Index (RSI) at current trend shows a lowly value of 35.48, highlighting the undervalued market status for ADA. Price is currently trading at the apex of the descending triangle, and any movement below the base at $1.20 will trigger a downswing which could potentially downturn to $1.
ADA/USD 4-hour chart: Bearish outlook sets support floor at $1.15
On the 4-hour chart for the ADA/USD trade pair, price can be seen facing a distinct decline and price continues to move further away from the 4-hour Exponential Moving Average (EMA). The RSI is set at 38.33, indicating no signs of a breakout on the horizon. The Moving Average Convergence Divergence (MACD) curve consolidates the bearish trend, moving below the neutral zone at the 0.00 mark. Over the next short-term trading session, price is expected to decline past the current $1.20 support, shifting the floor towards $1.15.
Cardano price analysis: Conclusion
Cardano faces a significant bearish period as price continues to face a lengthy spell on the sidelines. Major technical indicators suggest that price is expected to crash over 17 percent. Some resistance is expected at the incoming $1.15 support floor, with potential of further decline towards the $1 mark. A strong close near $1.30 seems unlikely, but remains the only point where an upturn could be formed.
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