Crypto

Cardano at Risk of Further Losses as Death Cross Looms

Cardano $ADA Cryptocurrency Price Update
  • Cardano price is on the move to collapse due to the token’s sagging momentum.
  • The Ethereum killer fell below a major support level, implying a bleak outlook for ADA.
  • To invalidate the bearish view, Cardano must retake $1.40.

Cardano’s price continues to be hampered by a lack of momentum, as ADA fails to regain from the crypto market slump. The Ethereum killer may be on its way down as bears take control of the market after the cryptocurrency went below a key support level.

Cardano (ADA) price is on the verge of collapsing

On the daily chart, Cardano’s price has fallen below the lower boundary of the descending parallel channel, indicating that ADA may have further room to fall. According to the slice underneath the dominant trend pattern, the Ethereum killer might drop 34% to $0.91.

The ADA bears’ initial target is the August 4, 2021 low of $1.32, followed by the July 28, 2021 low of $1.25, which coincides with the Momentum Reversal Indicator’s support line (MRI). Cardano price should be able to rely on this area as a reliable line of defense.

If Cardano pricing continues to lose steam, the token might go as low as $1.10 on June 23, before sliding even deeper to the psychological support level of $1.00. ADA may finally hit the gloomy aim of $0.91 if selling pressure increases.

Related:  BTC Earns $1.5k Under 1 Hour as Bitcoin Price Erases Days of Downtrend

The 50-day Simple Moving Average (SMA) has intersected with the 200-day SMA on the daily chart, signaling a death cross that is predicted to cause a sell-off.

If Cardano price manages to retake the lower border of the parallel channel at $1.40 as support, the bulls may be able to reverse the period of underperformance. However, ADA may face significant obstacles in its rehabilitation efforts.

The high of $1.44 on July 7 is the next level of resistance for Cardano price. Another barrier will arise at $1.49, where the 21-day SMA and the June 15 high converge, before another hurdle appears at $1.61, where the 21-day SMA and the June 15 high converge.

Cardano bulls must also target $1.84, where the 50-day SMA and 100-day SMA meet and break above $2.10, where the 200-day SMA and the top limit of the ruling technical pattern intersect, to break out of the current downtrend.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.