Cardano Drops Below $1 Following 20% Weekly Decline


Cardano was no exception to the market’s decline. After it failed to break out of the descending channel (marked yellow), the bears were able to push the price what the next destination is.

Technical Analysis

Technical Analysis By Grizzly

The Daily Chart:

On the daily timeframe, Cardano is moving down in a descending channel and has corrected from the recent 60% spike to the Fibonacci Retracement at 0.618. The most important for the bulls is to push the price back above $1, which now acts as a resistance (marked blue). If this happens, one can hope to retest the top of the channel; otherwise, the supports at $0.86 and $0.68 are zones that have the potential to reverse the trend.

RSI 30d indicator is also moving in the bearish area but still holds ascending line (marked green)

Moving Averages:

MA20: $1.11

MA50: $0.96 (Cardano is here now)

MA100: $1.05

MA200: $1.43

1
Source: TradingView

The 4-Hour Chart:

On the 4-hour timeframe, as the daily timeframe, Cardano is trading in a descending channel (marked blue), with the bottom on the short-term horizontal support being at $0.91.

Related:  ETHAX: 75% of Traders Want Nothing to Do with BTC Unless Regulation Is in Place

As long as the price does not break out of this channel and the RSI 30 indicator moves below the descending line, one can not expect significant growth from the price. Price is expected to fluctuate widely in this zone.

1
Source: TradingView
SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.




Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: