Cardano is Trading In a Triangle Pattern: Is this A Warning Sign?

• Cardano (ADA) has given a return of -43% in the previous year.
• Cardano’s (ADA) technical summary shows a sell signal.
• Cardano’s price is trading below the 100-day and 200-day EMAs.

Cardano represents a proof-of-stake blockchain platform with a mission to enable individuals with the drive to make positive global impacts, including changemakers, innovators, and visionaries.

The ADA coin is currently trading at $0.247 with an increase of 0.8% in today’s market session. The coin has a market cap of $8.6 Billion and a circulating supply of 35.12 Billion ADA coins.  

The ADA coin reached its all-time high at $3.10 before witnessing a significant decline of over 92%. This vertical drop found support at the $0.24 level, and although there were attempts at recovery, they proved unsuccessful.

Currently, the price is within the confines of a descending triangle pattern, which is typically a bearish sign. It’s expected that the price will soon break out of this pattern, potentially leading to further declines in the days ahead.

The technical summary tools are indicating a weak signal for ADA. Among the 26 indicators, the majority are giving a sell signal, indicating that the price is in a downtrend.

Cardano (ADA) Price Analysis

ADA by writer50_tcr on TradingView.com

Cardano (ADA) is trading below the 100-day and 200-day EMAs, signaling a bearish sentiment for the weekly timeframe. This suggests the presence of sell-side investor sentiment and a prevailing bearish momentum for the coin.

Furthermore, the MACD indicator indicates a bearish momentum as it trades below the signal line, accompanied by a red histogram on the charts. These factors collectively contribute to a negative pattern, indicating a potential price decline ahead for ADA.

Additionally, the relative strength index (RSI) for ADA hovers around the 30 level, with the RSI line trading below the simple moving average (SMA) line. This is a weak signal and suggests that sellers dominate the market. Consequently, the price is expected to experience a negative movement shortly.

Conclusion 

As per the analysis, Cardano (ADA) is moving in a downtrend. The price of the coin is making a weak structure. The coin has given a negative return in the previous few months. Additionally, the indicators are pointing to the possibility of a further decline in the future. Thus, the price is likely to decline in the upcoming days.

Technical Levels

• Support – is $0.242.
• Resistance – is $0.329.

Disclaimer

The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.