Cardano edges close to the make or break point
Key receivers
Cardano remains stable, trading in a tight price range. This type of price action indicates a potential increase in volatility. ADA should post a daily close of $0.48-$0.41 to resolve the current trend.
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The macroeconomic environment continues to take a heavy toll on the cryptocurrency market. Feeling It keeps getting worse. Although many market participants seem to be waiting on the sidelines, Cardano seems destined for a big price movement.
Cardano continues to strengthen.
Cardano seems to be in a significant price movement.
ADA has seen its prices drop by about 17% over the past three weeks. Looking at the daily chart, the bearish decline came after the rejection of the descending triangle formation hypothesis that started developing in early May. Now, Cardano is nearing the top of the pattern, expecting a significant increase in volatility.
The height of the Y axis of the triangle shows that if it is above support or below resistance, the ADA can make a 44% price move. Still, a clear break of the $0.48 resistance level or $0.41 support is a must.
An increase in buying pressure pushing Cardano above the hypotenuse of the triangle at $0.48 could trigger a major breakout. If that happens, ADA could find strength to reach its 200-day moving average at $0.63 or the May high of $0.69.
However, the loss of the $0.41 level as support may encourage market participants to exit their long positions, adding to Cardano's downward pressure. In this bearish scenario, ADA could target $0.33 or $0.25 if the downtrend is stopped and outsold.
From Cardano's ambiguous point of view, traders seem to stay on the sidelines and wait for a clear signal before entering anywhere. However, global macroeconomic conditions continue to weigh on crypto market sentiment, pushing the Crypto Fear & Grade Index into the “Extreme Fear” region. If such conditions continue, it may be difficult for Cardano to climb to the top.
Disclosure: At the time of writing, the author of this article owned BTC and ETH. The information in this article is for educational purposes only and is not investment advice.
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