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Cardano price analysis: ADA expected to crash 17 percent as price breaches critical support

Terra price analysis

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.

Cardano price analysis: ADA expected to crash 17 percent as price breaches critical support 1
Cryptocurrency heat map. Source: Coin360

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.

Cardano price analysis: ADA expected to crash 17 percent as price breaches critical support 2
Cardano price analysis: 24-hour chart. Source: Trading View

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: ADA expected to crash 17 percent as price breaches critical support 3
Cardano price analysis: 4-hour chart. Source: Trading View

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.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Razi Khan

Razi Khan

A Master's graduate in Renewable Energy Systems from England, UK, Razi is a tech-enthusiast. He's served as a content specialist for BlockPublisher in the US and has been an avid member of the crypto space as a journalist, trader, investor and analyst since 2018.

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