With the launch of the Alonso Hard Fork and mainly the smart contracts on Cardano, the price was expected to hit $5 before the end of 2021. Despite the target remaining pretty much distinct, the Q1 2022 was expected to start with a notable blast. Woefully, both events lead to a deep impact on the ADA price rally that compelled the asset to slash below the $1 levels. Yet with a strong rebound, Cardano now comfortably sits above $1 but the worst luck appears to be at the doorstep that could drag the price down.
Currently, in the small time frame, the ADA price is trending within a depleting parallel channel and now attempting to bounce off in the mid-way. However, the bears are also equally strong at the moment which may bring them down. Eventually triggering a notable flip that can prevent the price to fall deep down within a bearish well.
Cardano Price To Plunge More ?
- As mentioned before, the ADA price is trending within a descending parallel channel but as it dropped heavily before that, the price has now formed a notable bearish flag
- The asset has already finished its half way swing within the flag and hence yet another wave may occur
- Yet after another low and high, the price could collectively decline from the upper levels and plunge heavily, slicing through the support levels at $0.871.
- Importantly, the crucial support zone lies around $0.703, where-in a flip needs to be triggered, else the asset may fall into a strong bearish trap that may be very difficult to flip.
Collectively, no doubt the price action of the asset is pretty bearish, yet the technicals point out towards a trend reversal. The RSI in the lower time frame is hovering along with the middle bands, constantly flipping from the lower levels. On the other hand, the MACD is showing the beginning of accumulation of buying volume that may not be very huge, but sufficient to hold the ADA price levels above the support line. If the current attempt stands successful then Cardano may resume with a notable uptrend shortly.