Cardano price breaks the descending parallel channel, yet appears to have initiated with consolidation
The contraction may end up shedding the price below the crucial levels which are expected to rebound very soon
Cardano Price to test Crucial Levels
Cardano price that accelerated the bull run since the mid of the current month, appears to have lost the track offlet. The huge descending consolidation od ADA price and the struggle to regain the lost positions, point out a probable downtrend.
The price chart has formed a short term double-top pattern and according to an analyst, visiting lower levels is imminent. Analysts Altcoin Sherpa predicts the price may visit the levels below $1, or close to $0.9 very soon.
However, the price needs to smash the levels around the 21-EMA around $1.15 or $1.2 in order to recall the ADA bulls and break the horizontal hurdle.
ADA Price Analysis
Cardano price initiated with a consolidation a couple of days before, yet the difference was the consolidation was in a descending pattern. Therefore revisiting to much lower levels haunted the community. However, the price bashed the channel and initiated an uptrend, however, it was also short-lived.
As viewed in the chart, the trading volume is depleting at a greater pace and due to this, the price fails to receive the required boost. And hence a consolidation phase is all that the asset can trend within.
Considering the indicators, the RSI which trended at the bottom levels appears to have jumped to some extent. But the MACD indicators do not point out a buy or a sell signal as both the MACD and signal lines are united with each other.
At the time of writing, the Cardano price is $1.15 with a jump of 1.5%, securing the 5th position on the cryptocurrency ranking list. The market capitalization remains more or less unchanged with more than $37 billion. However, the trading volume for the ADA price has dropped drastically by more than 20%, plunging from more than $5 billion to $3,942,592,758.