While the bearish sentiment is returning to the crypto market, the Cardano price has experienced a significant drop in the last three days. From the last upswing of $0.28, the altcoin market value tumbled 9.3% to currently trade at $0.255. Amid this downfall the sellers breached the support trendline of the bearish pennant pattern, indicating a prolonged downfall in the near term.
Also Read: Cardano (ADA) Products Welcome New Comprehensive Updates
Bearish Pennant Formation Signals Prolong Downfall
- A bearish pennant pattern offers a minor pullback in the prevailing trend to replenish the exhausted bearish momentum.
- The coin buyers are experiencing demand pressure at near $0.25
- The intraday trading volume in the Cardano coin is $124 Million, indicating a 33% loss.
Source- Tradingview
On August 31st, the coin price gave a massive breakdown from the wedge pattern’s support trendline. This crackdown is expected to offer sellers additional resistance to pressurize the prices to lower levels.
However, the falling prices faced demand pressure at the $0.25 mark evidenced by the lower price rejection in the daily chart. If the buying pressure rises, the ADA price may witness a minor pullback to retest the breached support trendline
The upswing could validate the price sustainability for lower prices and offer traders an opportunity to short-sellers. If the market continues to favor the bear, the post-retest drop could plummet the prices to the $0.22 mark registering a 17% loss.
Will the ADA Price Consolidation Phase Continue?
Interestingly, the recent consolidation phase in Ada traded within the price range of the August 25th candle. Thus the $0.278 and $0.238 act as potential resistance and support respectively. If the anticipated downfall witnessed rising demand at the $0.238 mark, the ADA price could rebound from this support to prolong sideways.
- Moving Average Convergence Divergence: A bearish crossover between the MACD(blue) and signal line(orange) could increase supply pressure in the market.
- Bollinger Band: The flattish lower boundary of the Bollinger band indicator slope may provide viable support to the Cardano coin.
