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Nick Leeson
Mar 1, 2020
by Nick Leeson

Cardano to witness more downtrend, 4-11% drop soon

Cardano
Cardano was among the top 10 largest cryptocurrencies in the world but the same cannot be said now. Cardano aka ADA has dropped to 12th position with Chainlink above it. Like many, Cardano seems to be doing better considering the rumours. The price, at the time of writing, has surged 1.05% higher in the last 24 hours.

With over $1.25 billion in market cap, Cardano's spot is in jeopardy with Houbi Token just below it at $1.22 billion. With more drop in price, ADA doesn't seem to be doing well.

  • The formation of a top reversal, head, and shoulder pattern, the price of Cardano is in danger of dropping to levels $0.0462, and 0.0410.

  • Optimistically, the first drop is where the massacre should end for ADA, However, the stochastic RSI indicates the chances are bleak.

    • Four Hour Cardano Chart

    Source: Trading View.

    Like the double top pattern, Head and shoulder is also a top reversal pattern, which means that the uptrend has exhausted and the potential downtrend has begun. For ADA, the price has already breached below the neckline at $0.056. Since breaching the neckline, Cardano has shed 18% in its value. As the price looks to recuperate, more drops seem to be in place.

    At press time, ADA was worth $0.049 and the grim future is already unfolding. The price seems to be dropping to the immediately available resistance at $0.0462. Solidifying ADA's drop is the Stochastic RSI, which has started its descent from the overbought zone.

    Since Stochastic RSI is exiting the overbought zone, the potential of bearish pressure aka the selling pressure is overwhelming. Hence a further drop from $0.0462 can be expected to end at $0.0410, which is at 16% from the current price. However, the drop could be cut short by a small resistance zone present at $0.0427. Further, this will cause the Stochastic RSI's drop to stop, as seen before.

    As mentioned in the earlier articles, the brutal drop in prices for altcoins and Bitcoins are due to the latter. The spread of the Coronavirus has already caused the stocks to bleed. It has also caused the gold price to depreciate.

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    Cardano to witness more downtrend, 4-11% drop soon
    Nick Leeson
    Nick Leeson is an avid trader and cryptocurrency enthusiast. Introduced to cryptocurrencies in early 2016 by a misclick on a YouTube video, Leeson has grown increasingly fascinated by them. He owns cryptocurrencies to trade and complete his goals of growing his accounts from scratch. Leeson's favourite cryptocurrencies include a lot of mid-cap altcoin projects that have the potential to actually disrupt the future. Any and all technical analysis/price prediction by Leeson is not a financial and/or investment advice of any sort.

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