On Monday (5), Cardano (ADA) price showed a massive breach of the support trend line of the channel pattern. As a result, the cryptocurrency has entered an upward trend for this currency over the past five months.
On the one hand, this break accelerated the selling pressure in the market, providing sellers with new resistance to push prices lower. In the short term, this could lead to a drop in ADA price and a loss of the $0.30 support later this month.
Learn how this pattern can lead to more devaluations and how to take advantage and improve your standing in the ADA.
Prices and support
According to CoinGecko, the price of ADA is running at 1% on Thursday (8) and is valued at $0.324. In terms of the charts, the main price support is at the $0.323 area as shown in the above chart.
The daily bearish exponential averages or exponential moving averages (20, 50, 100 and 200) indicate that buyers will face several hurdles before regaining control of the trend. Trading volume on ADA reached $336.5 million, up 19.6% over the past 24 hours.
A bearish breakout of the support trend line indicates that ADA price is likely to extend its previous downtrend. Since the breakout point, the price has declined by 9.5% so far and is currently trading at the $0.324 mark.
As the selling continues, the coin’s price is likely to drop another 9.6%, hitting the psychological mark at $0.30. This price level should contain buyer orders from several traders waiting to enter at a discount.
However, in theory, the potential target for this pattern break is the swing lows created during the formation of channel patterns. Thus, keeping in mind the bearish scenario, a successful break below the $0.30 support would lead the price to drop to $0.245. Any total movement of 25% in losses.
Will Cardano miss the $0.30 mark?
A daily loss of 7.7% on high volume indicates a bullish selling momentum in ADA price. If the selling pressure persists, then Cardano price will break the minor support at $0.323 and drop to the $0.30 level.
This psychological support will not be easily broken and thus the price is likely to consolidate above it for a few days before any further declines.
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