On February 2nd, the crypto market recorded a notable outflow as Bitcoin price breaks below $100k floor. The renewed selling spread quickly to the altcoin market with top assets like ADA, hints major breakdown below the triangle pattern. Will this extend the current downfall in Cardano price, or could buyers be waiting for a counterattack.
By the press time, the ADA price trades at $0.8 with an intraday loss of 9.7%. Consecutively, the asset’s market cap plunged $28.8 Billion, while the 24-hour trading volume is at $1.295 Billion.
Key Highlights
- The Cardano price breakdown below the triangle pattern hints potential for an extended correction.
- The ADA daily chart shows key support levels at $0.7 and $0.52.
- The coin price is wavering above the 200-day EMA, indicating the broader trend remains bullish.
Cardano Price Shows Major Breakdown Below Triangle Pattern
Over the past two months, the Cardano price has projected a sideways action, struggling to sustain above $1.3 resistance. This consolidation in the daily chart shows the formation of pennants— characterized by a long-pole uptrend and temporary correction within two trendlines.
As the two weeks in the crypto market witnessed accelerated selling pressure, the ADA coin plunged from $1.15 to $0.79, registering a loss of 30%. The falling price gave a decisive breakdown below the lower trendline, paying the buyer’s way for further correction.
If the daily candle closes below the trendline, the post-breakdown may push the asset 40% down to hit $0.51, followed by a retest to $0.45.
Technical Indicators:
Exponential Moving Average: The Cardano price breakdown below 20, 50, and 100 daily EMAs indicate mounting selling pressure. Moreover, a potential bearish crossover between the 20-and-50-day Exponential moving average could bolster a prolonged downfall.
Relative Strength Index: The daily RSI slope plunged to 31%, accentuating the bearish market sentiment.
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