Cardano price positions itself for a steep correction as ADA bulls disappear – FXStreet

Akash Girimath Akash Girimath
FXStreet

Cardano price is consolidating inside a bearish setup that is due for a breakdown soon. If the bears shatter one crucial level, it will trigger a crash that will knock ADA down to levels last seen six months ago.
Cardano price has set up four lower highs and four equal lows since December 7. Connecting these swing points using trend lines reveals a descending triangle setup in play. This technical formation forecasts a 17% downswing, obtained by adding the distance between the first swing high and swing low to the breakout point at $1.20. 
The threat of a crash builds up as Cardano price trades around the apex of the triangle at $1.24. A four-hour candlestick close below $1.20 will indicate a breakdown and trigger a 17% downswing to $1. However, investors need to note that the support level at $1.15 will play a vital role in defending the incoming crash. If the selling pressure overwhelms, ADA will head straight to the next support floor at $1.02, present in the proximity of the theoretical target at $1.
ADA/USDT 4-hour chart
ADA/USDT 4-hour chart
Supporting this crash for Cardano price is IntoTheBlock’s Global In/Out of the Money (GIOM) model, which shows that a strong support level is present at around $0.977. Here, roughly 3890,000 addresses that purchased roughly 5.76 billion ADA are “In the Money” and are likely to buy more if ADA heads lower.
Moreover, the 552,690 addresses that purchased 10.19 billion ADA at an average price of $1.27 are “Out of the Money.” These holders might offload their holdings and serve as a source of selling pressure if ADA rises higher. 
ADA GIOM 
ADA GIOM 
Lastly, the number of large transactions worth $100,000 or more has dropped from 8,870 to 2,880 over the past month. This 67.5% decline suggests waning interests from high networth or whale investors.
ADA large transactions
ADA large transactions
While things are going against Cardano price, a decisive four-hour candlestick close above $1.30 will alleviate any short-term selling pressure and create a higher high, invalidating the bearish thesis.
In such a case, investors can expect ADA to rally to retest $1.45 before tagging the $1.51 hurdle.
 

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Bitcoin price shows signs of exhaustion after retesting a major hurdle. This development could result in a correction if bulls can't make a comeback. Ethereum price, despite the Merge narrative, remains correlated to BTC and could tumble if the big crypto does.
Ethereum price and the altcoins closely related to the ecosystem have been rallying massively over the last few weeks. While this narrative makes sense, investors need to pay close attention to Merge, which is scheduled to occur on September 19.
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Ripple witnessed massive growth in On-Demand Liquidity related sales. Despite the ongoing legal battle with the SEC, the payment giant continued its expansion and partnerships. Analysts have revealed a bullish outlook on XRP. 
Bitcoin has overcome the 200-week SMA and 30-day EMA, denoting a major surge in bullish momentum. As a result, BTC could revisit anywhere from $25,000 to $30,000 soon. A daily candlestick close below 200 four-hour SMA at $21,117 will invalidate this bullish thesis. 
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