For over a month, the price of Cardano (ADA) has experienced a steady correction while Bitcoin (BTC) consolidated around $68,000. The ADA price recorded a 28.5% drop from its peak of $0.8, retreating to a support level of $0.57. So, what are the expectations following the recent movements in the cryptocurrency?
Critical Level in Cardano
This correction in the cryptocurrency has turned into a head and shoulders pattern, indicating that Cardano might be ready for further correction. With the overall market sentiment in the correction zone, the Cardano trend is showing a bearish inclination. The daily price chart of the cryptocurrency displays the ADA price trend forming a head and shoulders pattern with the neckline at the $0.567 level.
Theoretically, this chart pattern is often seen at the market’s peak and can reflect an increase in selling pressure. However, bullish support could lead to a recovery in the altcoin and potentially reflect a high-momentum uptrend. If the bearish pattern does not materialize, the ADA price could offer a double bottom possibility while testing the long-standing support trend line.
ADA Price Forecast
As of the current position, the ADA price is trading at $0.58, reflecting a 1.93% intraday drop, which mirrors the increase in overall supply pressure. However, the formation of a tail indicating price rejection at lower levels could be leading to a potential reversal of the uptrend. The bear pattern’s neckline coincides with the support trend line and the $0.567 level.
This situation could reflect a critical point for determining the future price trend of Cardano. If buyers manage to push prices up from a double bottom reversal, the ADA price could reach $0.68. However, a fall below the critical support could reduce its market value by 20%, taking it down to $0.46. Consequently, according to experts, the correction in the cryptocurrency may have come to an end. Moreover, if Cardano breaks the indicated formation, it could reach the $0.68 level. Contrary to the assumption, a drop below the critical level could lead to a potential new wave of correction.
