- Cardano price, like other cryptocurrencies, coils in a triangular fashion.
- ADA price sees rejection from both the 8- & 21-day simple moving averages.
- Invalidation of the downtrend is a breach above $0.48.
Cardano price could experience another sell-off. The swing lows established in June are unstable. Traders should also be hesitant to use the swing low on May 12 as a bullish invalidation level.
Cardano price looks like a smart money trap
Cardano price looks like it is setting up for a “sweep the lows” event targeting a retest of the $0.40 barrier and possibly the May 12 swing low at $0.39. Like many other cryptocurrencies in the market, the alternative-smart contract token coils in a triangular fashion. However, unlike its peers, the ADA price never established a progressive rally throughout the last weeks of June.
Cardano price has been trading range bound within the mid-$0.40 zone for the last 23 days. Its recent sideways nature only pales in comparison to USD stablecoins.
Cardano price currently trades at $0.456. On July 4, 2022, the bears successfully rejected the ADA price beneath the 8- and 21-day simple moving averages (SMA). ADA price could induce traders to open an unjustified long position, believing that the triangular pattern will continue to hold.
An additional retest of the $0.43 barrier could become the catalyst to breach the swing lows established in June at $0.42. Furthermore, attempting to catch a knife in the $0.41 region while using the June 12 swing lows at $0.39 is ill-advised. Ultimately, this thesis concludes that a plummet to $0.37 and lower will be unsurprising.
ADA/USDT 4-Hour Chart
Invalidation of the bearish trend lies above the 21-day SMA at $0.48. If the bulls can reconquer this resistant barrier, they may be able to rally as high as $0.60, resulting in a 32% increase from the current ADA price.