Bearish Flag Hints Slide Below $0.245

Bearish Flag Hints Slide Below $0.245

A breakdown from the bearish flag pattern may set the ADA price for an extended downfall below $0.245

Published 6 seconds ago

For over a week, the Cardano price has witnessed high volatility but no progress in either direction. The candles projected multiple short-bodied candles a high week accentuating the uncertainty among traders. However, this wavering is resonating between two parallel trendlines, indicating the formation of a Bearish flag. Here’s how this pattern could influence the near future trend of the seventh largest cryptocurrency.

Also Read: ADA Price Prediction: Cardano Rally In 2023 Boils Down To This Support

Bearish Flag Formation Hints Further Correction Ahead

  • With an intraday loss of $1.6%, the coin sellers challenge the lower support of the flag pattern
  • Inverted Flag pattern breakdown could plunge the ADA price below $0.245
  • The intraday trading volume in the ADA coin is $114 Million, indicating a 3.5% loss

ADA Price PredictionSource- Tradingview

During the August end, the ADA price experienced a sharp downturn, with its value plummeting from $0.28 to a concerning $0.55, marking an 11% loss. While the drop increased the negative sentiment in the market, September month brought a lull in the storm. 

Cardano coin began to move sideways, seemingly consolidating within a rising channel. Delving deeper into the 4-hour timeframe chart, this sideways action hints at the formation of a bearish flag pattern. 

Considering a common outlook of this pattern, if the coin drops below its support trend line – particularly if there’s a 4-hour candle close beneath it – those holding the coin might witness a steep decline. 

A post-breakdown drop could see altcoin prices decrease by approximately 4% hitting the $0.245 mark.

Cardano Whales Shift 1.02 Billion $ADA: Market Impact Ahead?

Cardano coin’s recent price movements have been a rollercoaster, to say the least. However, The emerging bearish flag pattern, a recent tweet from renowned crypto analyst Ali Martinez highlighting In just the past week, Cardano whales have either sold off or redistributed an astounding 1.02 billion $ADA adds more to the bearish sentiment. These tokens equate to a monetary value of approximately $265 million, suggesting some indicate shifting sentiments among big players.

This development aligned with a bearish pattern increases the likelihood of a price drop to $0.245 or below.

  • Moving Average Convergence Divergence(daily): A bearish crossover between the MACD(blue) and signal(orange) slope reflects the bearish momentum is aggressive. 
  • Exponential Moving Average(daily): The 20 EMA slope acts as strong resistance amid minor pullbacks.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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