Cardano (ADA) Price at Risk: Potential Sell-off Looms

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The Car­dano (ADA) price is at risk of break­ing down from a long-term ascend­ing sup­port line, some­thing that could trig­ger a sharp fall.

The price action and indi­ca­tor read­ings from dif­fer­ent time­frames sup­port the ongo­ing descent, increas­ing the like­li­hood that a break­down will even­tu­al­ly occur.

Cardano Price Drops After Deviation

The week­ly time frame tech­ni­cal analy­sis for ADA pro­vides a bear­ish out­look. The main rea­son for this is the devi­a­tion above the long-term $0.40 resis­tance area and the sub­se­quent decrease below it. 

This is a bear­ish sign since it means that the break­out was ille­git­i­mate. Rather, sell­ers took over and pushed the price down. 

Cardano (ADA) Weekly Price Movement
ADA Price Prediction
Cardano (ADA) price Chart
ADA/USDT Week­ly Chart. Source: Trad­ingView

Addi­tion­al­ly, the week­ly Rel­a­tive Strength Index (RSI) gives a bear­ish read­ing. Traders uti­lize the RSI as a momen­tum indi­ca­tor to assess whether a mar­ket is over­bought or over­sold, and to deter­mine whether to accu­mu­late or sell an asset. 

If the RSI read­ing is above 50 and the trend is upward, bulls still have an advan­tage, but if the read­ing is below 50, the oppo­site is true. The indi­ca­tor is below 50 and decreas­ing, a sign of a bear­ish trend.

ADA Price Prediction: Will a Breakdown Occur?

The tech­ni­cal analy­sis from the short­er-term dai­ly time frame aligns with the read­ings from the week­ly one, thus pro­vid­ing a bear­ish ADA price prediction. 

Cur­rent­ly, ADA bounced at ab ascend­ing sup­port line that has been in place for 152 days. How­ev­er, the line has been touched four times so far. Since lines get weak­er each time they are touched, an even­tu­al break­down seems likely. 

Break­downs from such long-term struc­tures usu­al­ly lead to sig­nif­i­cant down­ward move­ments. A dai­ly close below the line will be required to con­firm the breakdown. 

This could be done in the next 24 hours. In that case, a decrease to the $0.30 hor­i­zon­tal sup­port area will be likely. 

ADA Price Prediction
Cardano (ADA) price Chart
ADA/USDT Dai­ly Chart. Source: Trad­ingView

Despite this bear­ish ADA price pre­dic­tion, the ongo­ing bounce could con­tin­ue towards the $0.41 resis­tance area. If the price clos­es above it, it will inval­i­date the bear­ish pre­dic­tion and like­ly ini­ti­ate a sharp increase to $0.50.

How­ev­er, a rejec­tion from the area will mean that the trend is still bearish. 

For BeInCrypto’s lat­est cryp­to mar­ket analy­sis, click here.

Disclaimer

In line with the Trust Project guide­lines, this price analy­sis arti­cle is for infor­ma­tion­al pur­pos­es only and should not be con­sid­ered finan­cial or invest­ment advice. BeIn­Cryp­to is com­mit­ted to accu­rate, unbi­ased report­ing, but mar­ket con­di­tions are sub­ject to change with­out notice. Always con­duct your own research and con­sult with a pro­fes­sion­al before mak­ing any finan­cial decisions.

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