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. Access COINTURK FINANCE to get the latest financial and business news.
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.