Cardano price is likely to continue its downturn in the short term if bears manage to push prices below $0.13
ADA price has plummeted below $0.14 as the broader crypto market sell-off sees most digital assets trend lower. Bitcoin (BTC) has again plunged under $18,000 while Ethereum (ETH) has fallen to around $546. Yesterday, Stellar Lumens (XLM) price rallied over 21% but is currently down over 7% as altcoins see red.
The short term technical picture for ADA/USD suggests a bearish outlook which means that the cryptocurrency could trade as low as $0.10 in the coming sessions. The current price rejection will pick up momentum after the confirmation of a sell signal set up on the 4-hour chart.
At the time of writing, Cardano’s price against the US dollar is around $0.138, more than 5% down in the past 24 hours.
ADA/USD could dump to $0.10
ADA/USD 4-hour chart. Source: TradingView
Cardano’s current price is below the 20-EMA ($0.143) and the 50-EMA ($0.148). These price levels have previously anchored ADA, but are now offering stubborn resistance levels.
Notably, the price is capped by the upper boundary of a descending parallel channel, the scene of a recent rejection that saw ADA/USD plummet from highs of $0.150 to $0.136.
The ADA/USD pair is currently attempting to sustain a slight recovery above the middle line of the parallel channel. But with the RSI stuck below the 50-point and the overall bearish outlook in the crypto market, further declines are likely.
If bulls fail to hold $0.136, Cardano’s price could fall to the lower boundary ($0.130).
ADA/USD 4-hour chart showing price within descending triangle pattern. Source: TradingView
The descending triangle pattern is another technical indicator pointing to the short term bearish outlook for ADA/USD. As this pattern usually suggests a bearish continuation, the 4-hour chart shows that a breakdown below the triangle pattern is likely. If further losses occur, Cardano’s price could drop by more than 23% to $0.10 before bulls commit to a rebound.
The 4-hour chart is, however, likely to present a buy signal in the next few sessions. If the set up validates via a red nine candlestick, a rebound could take ADA/USD to highs of $0.18.
The post Cardano technical analysis: ADA/USD plummets under $0.14 appeared first on Coin Journal.