(Akash Girimath – FXStreet)
– Cardano price continues to shed gains after a sweep of the $0.505 resistance level.
– Continued selling pressure could see ADA drop to the $0.435 support level.
– A daily candlestick close above $0.505 will invalidate the bearish outlook for ADA.
Cardano price has been repeating a fractal pattern, which has taken the form of a short rally up to tap liquidity, for several weeks now, however, due to exhaustion and deteriorating market conditions, the so-called “Ethereum-killer” is now taking a u-turn and not stopping until it encounters a stable support floor.
Cardano price on a lower time frame
Cardano price swept the September 6 swing high at $0.512 and produced a higher high at $0.524. However, it failed to sustain its footing above the $0.505 support level, which flipped it into a resistance level as ADA crashed by 11%.
A minor pullback provided respite for the bears, but the sell-off seems to continue after a breakdown of the $0.472 support level. A continuation of this descent could reverse after the liquidity run below the September 7 swing low at $0.451
But if Bitcoin bears ruin the party, ADA could slide a lot lower to retest the $0.435 support level. Between $0.435 to $0.425 is where investors can expect a soft landing for Cardano price and the first stirrings of a reversal.
ADA could drop 7.5% in total, however, before a meaningful reversal occurs.
On the other hand, if Cardano price fails to break lower and climbs higher instead to produce a higher high above $0.505, it will invalidate the bearish outlook for ADA. In this situation, Cardano price could retest the $0.550 hurdle, followed by a potential advance to $0.582.
Note:
The video attached below talks about Bitcoin price and its potential outlook, which could influence Cardano price.
Read Bitcoin Weekly Forecast: The caveats to BTC’s slippery slope to $12,000