- Cardano price hits a seven-week low within a bearish chart pattern, defying the previous halt to a four-week downtrend.
- “Falling Megaphone” suggests ADA’s gradual decline, but the oversold stochastic suggests intermediate bounces.
- Bollinger Band may test Cardano sellers, targeting October’s yearly low.
- ADA rebound remains elusive as long as prices stay below the 200-day SMA.
Cardano (ADA) price drops over 7.0% to $0.3850 early Monday, hitting the lowest level since October 10. In doing so, the altcoin fails to extend its first weekly gain in five while trading within a six-week-old “Falling Wedge” bearish chart pattern.
Notably, bearish sentiment among the cryptocurrency traders, mainly due to the month-start consolidation, cautious mood ahead of the key U.S. data, and Bitcoin’s slump, weighed on the ADA price of late. Further, talks surrounding heavy position liquidations also exert downside pressure on the altcoin price.
Also read: Crypto Digest: Bitcoin Dips to 87K as OPEC+ Signals Caution and Global Data Softens
Apart from the bearish chart pattern, the quote’s sustained trading beneath the key Simple Moving Averages (SMA) and a jump in the trading volume also validate the ADA’s latest weakness.
According to Santiment, Cardano’s daily trading volume jumps to a one-week high of $745.57 million as the market capitalization (market cap) hits a 13-month low of $13.8 billion by press time.
However, a slew of downside filters and an oversold stochastic momentum indicator can challenge the ADA bears targeting October’s yearly low.
Cardano Price: Four-Hour Chart Highlights “Falling Megaphone”
On the four-hour chart, Cardano price remains under pressure within a six-week-old “falling megaphone” bearish chart pattern, currently between $0.3400 and $0.5050.
Adding strength to the ADA’s bearish bias is the sustained trading beneath the 200-bar SMA surrounding $0.5065.
Even if the ADA breaks the key SMA hurdle near $0.5065, the 50% and 61.8% Fibonacci retracement levels of its October slump, respectively near $0.5855 and $0.6580, can challenge the buyers before giving them control.
On the contrary, Cardano’s downside break of $0.3400 may rest near the $0.3000 threshold before targeting the yearly low marked in October around $0.2800.
Cardano Price: Daily Chart Points To Bear Run
On the daily chart, Cardano’s U-turn on Thursday extends towards hitting a multi-day low as the price remains well beneath the 200-day SMA, which broke early October.
However, the stochastic conditions are extremely oversold and hence the lower Bollinger Band (BB) surrounding $0.3615, close to the $0.3600 threshold, may restrict the quote’s immediate downside.
Below that, the $0.3000 threshold, October’s yearly low of $0.2800, and the previous yearly low near $0.2760 could gain the ADA bear’s attention.
Alternatively, Cardano’s recovery needs validation from Thursday’s high of $0.4390 and the middle BB of $0.4486 to convince short-term buyers.
Even so, the $0.5000 psychological magnet and a nine-month horizontal support-turned-resistance near 0.5100 could challenge the ADA bulls before giving them control.
Beyond that, the upper BB of $0.0.5360 and the 200-day SMA of $0.7095 might attract the Cardano buyers. Notably, the $0.6000 and the $0.7000 round figures may act as intermediate halts during the altcoin’s rise past $0.5360 and ahead of the 200-day SMA hurdle.
Conclusion
Cardano price traces major cryptocurrencies amid the broad risk-aversion, as well as position liquidations, as sellers cheer a two-month low within a bearish chart pattern. The altcoin’s further downside, however, looks limited as a slew of technical support levels join the oversold conditions of the stochastic. Still, the ADA’s broad bearish trend prevails as long as the price stays below the 200-day SMA.
Also read: Cryptocurrency Weekly Price Prediction: Is BTC, ETH, and XRP’s Rebound Reliable?
