Ever since the beginning of Q4 2021, the entire crypto space is swinging within a fixed price range. Despite the asset undergoing multiple sell-offs, it strongly maintained above $1 to showcase its tendency to reach higher levels. But in the upcoming days, one can expect a huge free-fall that could compel the price to hit half a dollar soon.
Cardano price continues to trade within the descending channel since the beginning of September as the broader market maintains some bearish underpinnings due to some fundamental factors. The sixth-largest cryptocurrency attempted a break above the midpoint of the channel at $1.45 last week but suffered a defeating blow that sent it to the base again.
Currently, the Cardano trades sideways just above the critical $1 mark since the recent crash. And hence the channel appears to be a major guiding factor for ADA pointing towards additional corrections in the upcoming days.
The trend across all the horizons, short, mid & long is notably bearish as the momentum (MACD) is extremely bearish while RSI is below 45. On the other hand On Balance Volume (OBV) is declining which indicates that the volume on Up days is lower than the volume on Down days. Therefore the demand(buyers) is lower than the supply(sellers). The nearest resistance is at $1.5 & later at $2 while support levels are at $1.
Collectively, the Cardano price is consolidating hard on the critical support levels and has more possibilities of a breakdown. If flipped from the current levels, then the bearish trend could be nullified. However, the probability of the ADA price breaking down appears to be pretty high.