ADA Technical Analysis: Bearish Clouds Over Cardano Breaks $1
Table of contents
Under the influence of a highly bearish resistance trendline, the ADA coin price breaks below the descending support trendline in the daily chart. Moreover, the fallout brings the breakout of the crucial psychological support of $1. Will this increasing bearishness drive the downtrend below $1?
Key technical points:
Past Performance of ADA
ADA coin prices break below the falling wedge pattern under the influence of a high supply resistance trendline. Moreover, the breakout of the bearish continuation pattern marks the fallout of $1. Over the last 36 hours, the recent recovery projects a retest of the bearish breakout.
Source-Tradingview
ADA Technical Analysis
The altcoin price action shows a head and shoulder pattern breakout with the descending support trendline acting as the neckline. Moreover, by calculating the distance between neckline and peak, the fallout hints at a downfall to the $0.45 mark.
The crucial 50, 100, and 200-day EMAs showcase a bearish alignment with a negative slope. The EMAs can provide a dynamic barrier to keep bullish growth in check.
The RSI Indicator reflects a sharp rise from the oversold zone, indicating a surge in underlying bullishness. Nonetheless, the slope remains below the halfway mark.
The MACD indicator shows a gradual reversal in the fast line, indicating a possible bullish crossover with the slow line. However, the bearish trend of MACD histograms remains in action.
In short, the ADA technical analysis projects the possibility of a downfall to the $0.45 mark with the reversal near $1.
Upcoming Trend
The ADA coin price action reflects the breakout of multiple support levels and bearish patterns, indicating a potential downtrend continuation. Hence, traders can find a selling opportunity with a bearish candle. However, the breakout of $1 will decline the bearish anticipation.
Support Levels: $0.81 and $0.60
Resistance Levels: $1 and $1.15