CardanoThis clearly shows the shortfall on the buyer side by triggering a bearish market structure breakout that pushes the price below a key support. While there is a small window for this development to recover, not making good use of this range could result in a major collapse.
Cardano price showed a descending triangle made by combining four lower lows and three equal lows produced since May 10.
The resulting technical setup showed a 40% drop towards $0.241, determined by adding the distance between the initial high and low swing to the breakout point of $0.4, scaring investors. ADA produced a daily candlestick near this level on October 10, confirming the downtrend and signaling a breakout of the descending triangle, further escalating things.
ADA priceIf they fail to break above the horizontal support at $0.4, things will continue to get much worse. Therefore, it is critical for investors to closely follow the daily candlestick that closed on October 11.
Koinfinans.com As we reported, Bitcoin price also looks set for another drop that could help ADA bears reach their targets faster. Interested traders can open short positions at the retest of $0.4 and wait for a confirmation via the daily candle close.
On the other hand, if buyers step in at this point and produce a daily candlestick above this level, triggering a minor recovery above the $0.4 barrier, a resurgence of these bulls is possible.
This development Cardano priceIf it forces the coin to produce a higher value above $0.482, it will invalidate the bearish thesis for ADA and potentially be the key to extending the rally towards 0.504d.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.