Cardano price currently He finds himself in a dangerous situation, Technical analysis highlights the possibility of a significant price correction. The analysis, performed on a 4-hour candlestick chart and shared on TradingView, indicates a potential 15% decline for Cardano’s price in light of the recent breakout below the Exponential Moving Averages (EMAs).
Cardano price breaks below the moving averages (EMA) to open a bearish scenario
As noted by cryptocurrency analyst (SwallowAcademy) On the TradingView platformCardano started the week with four consecutive bearish candles on the 4-hour time frame, which led to a decline below the Exponential Moving Averages (EMAs). This drop below the EMA on the 4-hour time frame has created a kind of bearish outlook, which in turn opens up the risk of Cardano price falling further on a shorter-term time frame. Taking the possibility of a price decline into account, technical analysis shows that there is no liquidity zone close to the current price action to act as a quick support level for Cardano.
The nearest support level is about 7% away from Cardano’s current price, and the analyst suggests that the cryptocurrency could revisit this level at around $0.83. Should this support fail, the analyst warns of a further decline of 8%, pushing Cardano’s price down even more quickly to $0.76.
Overall, this would represent a rapid 15% drop from Cardano’s current price by the end of the week, a move the analyst noted could be bloody. “Eyes are wide open here; it could get bloody,” the analyst said.
The bearish scenario can be invalidated
Although the bearish scenario remains valid, the analyst also presented a possible scenario that may invalidate these expectations. A Strong bullish bounce from here It could send the price of Cardano above the $0.98 mark and cause a rapid shift in the short-term price outlook. Such a bounce would bring Cardano down Back above the EMAs It indicates renewed upward momentum to limit the risks of further declines. In such a case, the analyst noted that Cardano would be able to do so Pay above $1.02 It eventually reaches $1.2 to $1.3 in the next few days.
At the time of writing, Cardano is trading at $0.9544 and is up 1.57% in the past 24 hours. Hopefully, the cryptocurrency can continue this upward movement To nullify the bearish scenario.
Ultimately, the next few days will determine which scenario will play out for the Cardano price. If the bearish condition develops as expected, a 15% correction may create new challenges for ADA holders. On the other hand, a bounce above $0.98 It would reignite optimism For Cardano to retest and eventually break $1.2, its highest price level in over two years.
Featured image created with Dall.E, chart from Tradingview.com
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