Cardano is on the verge of falling for the bears, according to Crypto Total Ventures
Cardano (ADA) has been rather stable over the past few years as the potential “Ethereum killer” and various upgrades add to the overall growth of the network. But when you look at recent price movements, history changes a bit.
Crypto Total Ventures analyzed ADA and described how the coin could fall into the hands of the bears.
Cardano about to fall?
Crypto Total Ventures argues that:
“ADA is on a very clear downward trend. You have to be very careful. “
With the ADA market currently consolidating in the $ 1 to $ 1.6 range, the chances of breaking these levels look very slim. The good news, however, is that even if there is a retracement, it doesn’t last long. A closer look reveals how long the last bull market lasted, with the most recent bull only lasting about half that time.
With the duration of the bull market shortened by 50%, the potential downtrend we can see will also be less than half and not permanent.
ADA’s Bull Run pauses halfway | source: Crypto Total Ventures
Where is the ADA security zone?
Usually a critical level of support is considered a safe zone. However, ADA has proven time and again that 1.3-1.5 (larger red rectangle) is an important range, as even 2018 ATH is $ 1.30. In addition, altcoins have been traded in this area for some time.
Since February, the bulls have repeatedly flipped the $ 1.3-1.5 zone from resistance to support and then back to resistance (see chart). These developments make it an important zone for the uptrend as once price has turned to solid support it could drift higher.
ADA Repeated Consolidation Zone | Source: Crypto Total Ventures
In addition, the analysis shows that ADA failed to break through 4 different levels of resistance. First, the price falls below the trend lines. Second, it failed to turn the 50-day MA to support. Third, it failed to break through the 20 week MA, and eventually even USD 1.30 and USD 1.50 remained resistance.
ADA downtrend active | Source: Crypto Total Ventures
To reverse the trend and get into a bull market, ADA needs to break through all of these levels of resistance. However, if it fails, it will continue to consolidate between $ 1.15 and $ 1.08.
However, in the short term, $ 1.40 is an important breakout level and a successful breakout of this level will create the conditions for a strong uptrend.
Short-term important price levels | source: Crypto Total Ventures
According to AMBCrypto