The Cardano coin has been a steep correction for over a month now and marked a recent low at $0.29. Starting from the July 14th high of $0.379, this altcoin lost a market value of 37% and evaporated the entire gain of June. However, the daily chart shows the falling price turned sideways after obtaining support at $0.29 and showcased the formation of a bearish pennant pattern. Here’s how this chart setup could influence the ADA price in the near future.
Also Read: Cardano Debuts New Hydra Version, ADA Price Pump Incoming?
Cardano Daily Chart: Key Points
- The formation of a pennant pattern indicates a minor break period before the prevailing trend continues
- A bearish breakdown from the lower trendline may tumble the ADA price for a 14% drop
- The intraday trading volume in the ADA coin is $8.2 Billion, indicating a 57% gain.
Source- Tradingview
After the sharp sell-off on August 17th, the ADA price witnessed demand pressure near $0.29 and went sideways. This consolidation spread in a narrow range reflects uncertainty in the market sentiment but with a closer look in the 4-hour chart, it forms a triangle of a pennant pattern.
This often appears in a downtrend and offers a short breather to recuperate bearish momentum and prolong the prior trend. Currently, the ADA price trades at $0.267 with an intraday of 3.44%. Until the two converging trend lines are intact, the coin price may continue its lateral walk and approach the triangle’s peak.
With a higher possibility, the Cardano coin should break the lower trendline which may intensify the selling momentum. The post-breakdown fall may plunge the prices 14.5% down to retest the June month low of $0.22.
Can Cardano Coin Reclaim $0.3 Mark?
While the market sentiment remains bearish for Cardano’s price, a breakout above the overhead trendline of the triangle structure could increase buying pressure. This breakout bolsters a minor upswing in the current downtrend and may push the prices 20% higher to hit $0.323.
- Relative Strength Index: The daily RSI slope rising above the 40% mark reflects the building bullish momentum for a bullish upswing.
- Exponential Moving Average: The 20-day EMA continues to act as a dynamic resistance against bullish bounces.
