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
Source- 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.
#Cardano whales have sold or redistributed roughly 1.02 billion $ADA over the past week, worth around $265 million. pic.twitter.com/5HuEyj2HB4
— Ali (@ali_charts) September 7, 2023
- 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.
