Price Analysis

Cardano Price at a Huge Risk of Dropping Extremely Hard, Target Appears to be Set at $0.32

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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May 19, 2022

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Highlights

    Cardano price appears to have lowered its trend from the time when the price slipped from the pivotal zones around $0.65

    The plunge displays the possibilities of the asset dropping below $0.5 levels and attempt to flip from the lower support

    However, the flip may not be strong and hence after a probable 12% jump the asset may face a strong rejection

The Cardano price action showcases a continuing descending trend as the selling pressure continues to mount.  The volume displays a reduced participation rate ever since the sellers extracted their profit recently, dragging the price too as low as $0.39. Yet the buyers jumped in to accumulate the asset at the discounted rate maintaining high volatility. 

Considering the daily chart of the ADA price, two significant patterns emerge. Firstly, the formation of a symmetrical triangle and secondly a bullish breakout. The ADA price has been swinging within a symmetrical triangle ever since the LUNA-UST crisis, slashed the price. And hence the current consolidation is expected to continue which may also include a couple of pullbacks below $0.5 too. 

adaprice

As mentioned before, the price is swinging within a symmetric triangle and hence could continue with the consolidation within the pattern for a pretty long time. Therefore, a pullback may be pre-determined which may be followed by an upswing close to $055. However, after a brief consolidation towards the apex, the price may either breakout to $0.6 or else drop to $0.45 levels. In an extended bearish case, the price may even tank below $0.4 levels too. 

Secondly, the candle pattern formed indicates a probable bullish trend that could be fast approaching. Here in the daily time frame, the price broke out of the consolidation following a bullish squeeze. 

adacandle

Bullish squeeze is a three-bar candle which developed on the daily chart, with the second stick below the first candlestick and the third stick below the second one. After a significant squeeze, the fourth candlestick resulted in a notable bullish one painted in green and surpassing the levels of the primary candlestick. 

This no doubt indicates a mid-term upward swing which may raise the Cardano (ADA) price towards $0.55 but eventually, a rejection may make its way out. Therefore a descending consolidation may be expected until the end of the monthly trade which may be probably a bearish one. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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