Cardano price locked in downtrend as ADA buyers are nowhere to be found – FXStreet

Sarah Tran Sarah Tran
Independent Analyst

Cardano price could continue its downtrend within the prevailing chart pattern as the bears engage in a sell-off. A technical indicator has flashed a local top signal, also suggesting that the momentum has flipped to the downside. 
Cardano price has formed a descending parallel channel on the daily chart, as ADA has consistently recorded lower highs and lower lows. 
The Arms Index (TRIN), which gauges overall market sentiment suggests that there is a significant uptick in sellers than buyers, indicating a sell-off. 
The Momentum Reversal Indicator (MRI) has flashed a local top signal on the January 20 candle, adding credence to the bearish narrative.
The first line of defense for Cardano price is at the June 23 low at $1.10. If selling pressure continues to increase, ADA may test the lower boundary of the governing technical pattern at $1.00 as a level of support.
Investors should note that if Cardano price drops below the aforementioned foothold, a 36% decline toward $0.64 would be put on the radar, a bearish target given by the prevailing chart pattern. 
ADA will discover two support levels at the February 22 low at $0.81, then at the February 8 high at $0.72 before Cardano price falls toward the bearish target at $0.64.
ADA
ADA/USDT daily chart
However, if the bulls manage to reverse the period of underperformance, Cardano price will face resistance at $1.28, where the 21-day Simple Moving Average (SMA), 50-day SMA and middle boundary of the governing technical pattern meet.
A spike in buy orders may see the bulls push Cardano price higher toward the upper boundary of the prevailing chart pattern at $1.61, coinciding with the 100-day SMA.
 
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Bitcoin price carried on last week’s losing streak amid fears of further losses. Investors foreshadow another crypto crash with the upcoming major event – the Ethereum Merge. The market is conflicted, with some participants believing the Merge has already been factored in. In contrast, others augur a sell-the-news scenario with immense losses.
MATIC, LINK and BAL have yielded massive gains for holders despite the crypto bloodbath. As Ethereum’s Merge draws close, MATIC and DeFi tokens witnessed a price rally. 
Ethereum Merge is scheduled for September 13, as the event draws close the altcoin has hit a new milestone. Analysts are bullish on Ethereum and predict a rally in the altcoin, ahead of the key event. 
Crypto.com price is battling high volatility following its rejection from massive seller congestion at $0.1562. If this buyer congestion zone fails to hold, CRO may retest June lows roughly at $0.1062 before it aligns itself for another bounce.
Bitcoin price shows an ongoing consolidation as it hovers at the same level for the past six days with no signs of directional bias. A breakout from this tightening range could result in a bearish move that eyes a sweep of the sell-stop liquidity below recent lows.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
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