Cardano (ADA) Ready for Steep Correction as Bulls Disappear
- Cardano’s price traverses a descending triangle, suggesting a 17% drop by breaching critical support.
- Transaction data invalidates bullish move hopes for Cardano amid underwater investors.
- A significant candle close beyond $1.30 will form a higher high, nullifying the bearish case.
Cardano (ADA) price consolidates within a bearish formation that might break down soon. If the alt’s bears breach one critical mark, they will catalyze a crash that might see ADA exploring down levels seen about six months ago.
ADA Price on Vulnerable Footing
Cardano price has formed four equal lows and four lower highs since 7 December. These swing points disclose a descending triangle formation. This technical pattern predicts a 17% plummet, obtained through adding the swing high to swing low distance to the $1.20 breakout level.
Cardano’s price remains poised to crash as it hovers near the triangle’s apex at $1.24. A 4Hr candle close under $1.20 will confirm a breakdown, triggering a 17% crash to $1. Meanwhile, the support mark at $1.15 is vital in preventing the upcoming price crash. If selling pressure magnifies, Cardano will move towards the following support barrier at $1.20, standing close to the hypothetical target of $1.
Meanwhile, the GIOM model supports the anticipated plunge in Cardano price as it indicates a massive support zone around $0.977. In this area, nearly 389,000 addresses bought around 5.76 billion ADA coins as ‘In Money.’ And they might purchase more if the alt dips further.
Furthermore, the 552,690 wallets that bought 10.19 Billion Cardano assets at $1.27 average price are ‘Out of Money.’ These investors may offload their positions, translating to selling pressure if the crypto climbs higher.
Finally, ADA’s transaction worth more than $100,000 declined to 2,880 from 8,870 within last month. The 67% drop indicates fading interest from whale investors.
As things appear against ADA, a significant 4-Hr candlestick close beyond $1.39 will cancel any near-term selling momentum and form a higher high, nullifying the bearish tale. In such scenarios, investors might expect Cardano to retest $1.45 before tagging the upward hurdle at $1.51.
ADA’s road with the least resistance is the downward one. The alt should avoid breaching one support to prevent the predicted fall. Also, a decisive candlestick close beyond $1.30 will invalidate the sinking narrative with a higher high.