Cardano (ADA), one of the largest altcoins by market value, has started running towards new lows. Negative sentiment in the Bitcoin market and the possibility of negative performance before the halving is making investors nervous. What is concerning is the price currently hovering around a critical support level.
How Much Will ADA Coin Be Worth?
The bear flag formation is typically seen in a downtrend, allowing sellers to take a short break and renew the downward momentum. As the selling trend continues, the altcoin price broke below the formation support trend line on August 30th. This break indicates that the downward trend, which provides short-selling opportunities for market participants, is likely to continue.
If sellers persist, the popular altcoin could drop below $0.238 and reach $0.22. The RSI indicator falling below the 40% level reflects strong downward momentum. The ADA price is encountering dynamic resistance from the 20-day EMA slope.
ADA Coin Chart Analysis
Cardano has been trading between $0.28 and $0.24 for the past few days. Bulls pushed the price above the range on August 29th but couldn’t sustain higher levels. This may have prompted short-term bulls to exit their positions. Selling pressure increased further, and the price fell below the uptrend line on August 31st. Bears will now try to pull the ADA/USDT pair below the $0.24 support.
If the price recovers from $0.24, the pair may continue to consolidate within the range for a while longer. On the other hand, if the price falls below $0.24, it could indicate the beginning of a decline towards $0.22 and eventually $0.20.
In the coming hours, if BTC closes below $25,400, it would support the $0.2 scenario. The negative scenario for BTC predicts a drop to $23,500 and $22,000, citing decreasing demand. Many experts predict that the price will remain under the control of sellers in the coming days.
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