Is Cardano Price Breakdown below $0.3 an Opportunity for Higher Gains?

Is Cardano Price Breakdown below $0.3 an Opportunity for Higher Gains?

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Within a month, the Cardano price has shown aggressive correction in the daily time frame chart. From the $0.3793 high on July 14th, the coin price tumbled a 23% drop and reached the current trading price of $0.23. However, the falling price has started showing a falling wedge pattern which hints at the maturity of a downward trend; is this the right time to buy?

Also Read: Cardano Welcomes New Updates as Transaction Count Tops 73M

Key Points From Cardano Analysis

  • A falling wedge pattern shapes the current downfall in ADA price
  • A bullish breakout from the overhead trendline would set the ADA price for a 13.5% upswing
  • The intraday trading volume in the ADA coin is $120.6 Million, indicating a 27% gain.

Cardano priceSource- Tradingview

On August 7th, the falling Cardano price witnessed strong support at the confluence point for 61.8% Fibonacci Retracement level and a lower trendline of the wedge pattern. In theory, the aforementioned FIB level is indeed strong support but after the breakdown of the 50% retracement level, the coin holders must remain cautious.

Thus, the bullish reversal pushed the price to 7% to rechallenge the overhead resistance trendline. Currently, the ADA price trades at $0.294 and may continue its downward trend until the two converging trend lines are intact.

A potential breakout from the overhead resistance will surge the coin price 13.45% higher to reach the $0.332 mark.

Will ADA Price Extend Correction Phase?

While the opportunity of a bullish upswing seems in favor, the increasing FUD in overall market sentiment cannot be ignored. If the overhead supply pressure rises, a breakdown below the wedge pattern’s lower trendline will provide sellers with an additional barrier to pressurize buyers. This breakdown could prolong the correction phase to $0.255.

  • Average Direction Index: The falling ADX price may reflect the weakening bullish momentum.
  • Exponential Moving Average: The coin price trading below the daily EMAs(20, 50, 100, and 200) indicates the path to least resistance for traders is downward.

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

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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