The current situation of the Cardano price is precarious, with indications of a potential considerable price correction from technical analysis. This analysis, carried out on the 4-hour candlestick chart and disseminated via TradingView, signals a potential 15% drop for the Cardano price in the wake of a recent break below the Exponential Moving Averages (EMAs).
Cardano Price Plummets Below EMAs, Hinting at Possible Bearish Turn
Crypto analyst SwallowAcademy, via the TradingView platform, noted that Cardano kicked off the week with a string of four bearish candles within the 4-hour timeframe. This marked the currency’s slide below the Exponential Moving Averages (EMAs). This dip beneath the EMAs during the 4-hour window has spearheaded a bearish prediction, which subsequently reveals the potential risk of the Cardano price taking even more hits in the short-term. The technical analysis indicates the lack of any immediate liquidity zone near the current price action that could offer swift support for Cardano.
Around 7% away from the current Cardano price, the closest support level is located. The cryptocurrency might revisit this level around $0.83, as per the analyst’s predictions. If this support fails, the analyst portends an extra 8% drop, plummeting the Cardano price swiftly to $0.76. Essentially, this would translate to a sudden 15% fall from the current Cardano price by week’s end – a move the analyst described as possibly ‘bloody’.
Bearish Prediction May Be Overturned
While the bearish prediction is still active, the analyst also provided an alternative scenario that could potentially nullify this forecast. A strong upward rebound could push the Cardano price above the $0.98 benchmark, suggesting an immediate shift in the short-term price prediction. This recovery would position Cardano back above the EMAs, indicating a revitalized bullish momentum that could diminish the risk of further drops. In such a situation, the analyst observes that Cardano could potentially surge past the $1.02 mark and even reach between $1.2 to $1.3 in the coming days.
Cardano is currently trading at $0.9544, having risen by 1.57% over the past 24 hours. It is expected that the cryptocurrency will maintain this upward trajectory to invalidate the bearish scenario.
Ultimately, the direction the Cardano price takes over the next few days hinges on which scenario comes into play. If the bearish prediction pans out as expected, the 15% correction could pose fresh obstacles for ADA holders. Conversely, a rebound above $0.98 could stoke hopes for Cardano to rechallenge its 2-year high of $1.2 and potentially surpass it.
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FAQ 1: What is the current scenario of the Cardano price?
The Cardano price is currently in a precarious situation with a potential for a considerable price correction.
FAQ 2: What are the implications of Cardano price falling below the EMAs?
The dip beneath the Exponential Moving Averages (EMAs) within the 4-hour window has triggered a bearish outlook, potentially leading to further decline in the short-term.
FAQ 3: How can the current bearish scenario for Cardano price be reversed?
A robust upward rebound that pushes Cardano’s price above the $0.98 mark could indicate a revitalized bullish momentum and potentially overturn the current bearish scenario.
FAQ 4: What is the significance of a rebound above $0.98 for Cardano?
A rebound above $0.98 could reignite optimism for Cardano to retest its highest price level of $1.2 in over two years, and potentially surpass it.
