Despite a 1.3% decline in the last 24 hours and a measly 0.1% dip over the past week, the market sentiment remains cautious, with traders closely monitoring the possibility of a downturn to $0.20.
At the heart of the current ADA price conundrum lies the intricate triangle pattern, a technical formation that often signifies a period of market indecision and potential trend reversal.
Within this pattern, the coin’s price movements are constrained between a converging support trendline and a resistance trendline.
The ongoing struggle to sustain a positive cycle hints at a potential bullish breakout. However, the looming threat of a significant plunge to $0.20 keeps many traders at the edge of their seats, anxiously observing the market dynamics.
Benjamin Cowen’s Stark Warning
— Benjamin Cowen (@intocryptoverse) October 16, 2023
Cowen’s warning stems from an in-depth analysis of ADA’s price chart, which revealed a troubling trend that has sent ripples of concern across the market.
According to Cowen’s analysis, Cardano experienced a critical breakthrough of a key trendline, triggering a phase of accumulation before entering a subsequent downtrend.
Despite a brief consolidation phase, ADA’s gradual departure from this period led to the erosion of vital support levels.
ADA market cap currently at $8.6 billion. Chart: TradingView.com
Cardano Struggle With Resistance And Support Levels
Underlying ADA’s price turmoil is the persistent battle between resistance and support levels. The crucial support at $0.24 has provided a temporary foothold for the cryptocurrency, preventing a more precipitous decline.
However, multiple lower-high formations resulting from overhead bearish pressure have cast a shadow over ADA’s short-term prospects, creating a challenging environment for sustained bullish momentum.
Despite these obstacles, ADA’s price action continues to reflect a tenacious effort to resist the downward pressure and retain a foothold within the symmetrical triangle.
Yet, the looming threat of a potential downtrend breaking below the support trendline remains a tangible concern for traders and investors alike.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Wallpaper Flare
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