For over a month, the Cardano price has witnessed a steady correction amid the Bitcoin price consolidation of around $68000. From the peak of $0.8, the ADA price plunged to $0.57 support, registering a 28.5 fall. This correction further developed into a head and shoulder pattern indicating the Cardano coin is poised for further correction.
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Cardano Price at the Mercy of a Key Technical Threshold
With the overall market sentiment in the correction zone, the Cardano trend showcases a bearish takeover. The daily price chart displays the ADA price trend making a head and shoulder pattern with the neckline at $0.567. In theory, this chart pattern is commonly spotted at market top reflecting a surge in market selling pressure.
However, the bullish support leads to a bounce back in the altcoin and projects a potential high momentum uptrend. As the bearish pattern fails to play out, the ADA price offers a double-bottom possibility as it tests the long-coming support trendline.
Currently, the ADA price trades at $0.58 with a 1.93% intraday drop reflecting an increase in overall supply pressure. However, the lower price rejection evident by the tail formation teases a potential bullish reversal.
The bearish pattern neckline coincides with the support trendline and the $0.567 level. This reflects a pivotal point at play for Cardano that could set the future price trend.
If the buyers manage to uplift the prices with a double bottom reversal, the ADA price could hit the $0.68 mark. However, a downfall below the critical support could plunge the market value by 20% to hit $0.46.
Technical Indicator:
- Relative Strength Index: The daily RSI slope to 41% indicates the sellers are leading the ADA’s current price movement.
- Exponential Moving Average: The fast-moving 20-day EMA acts as dynamic resistance to bullish bounces indicating the near-term trend is bearish.
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