Cardano's price has been on a downward trend lately, forming a head-and-shoulders pattern that suggests a potential further decline. The technical indicators also point to bearish momentum, with the RSI and MACD signaling selling pressure.
at $0.344, at press time, after a 1.5% drop in 24 hours. In fact, ADA has been on a bearish streak lately, given that its price has dropped by 16% in the last 14 days alone.
Now, a look at the one-day chart revealed that this bearish trend could persist. This, after Cardano formed a head-and-shoulders pattern, one suggesting that the token could enter a downtrend.that saw ADA gain by more than 26% in late September has weakened. And, market bears could start selling, pulling the prices lower on the charts.Such a bearish trend will be confirmed if ADA breaks below the neckline of this pattern at $0.344.
ADA might continue trading sideways due to a cluster of liquidations above its press time price. Such a hot liquidation zone usually tends to act as a strong resistance level.When there are more possible liquidations above the price and not below the price, it shows that short positions are dominating the market.
Therefore, if Cardano breaks above this zone, it could force these short traders to close their positions, creating buying pressure and a bullish reversal.Finally, data from IntoTheBlock revealed that after Cardano’s rally reached exhaustion in late September, the wallets that were “In The Money” dropped from 34% to 16% at press time.Nevertheless, the sentiment around ADA remains positive, and this could prevent an intense price drop.
ADA Cardano Cryptocurrency Price Analysis Head-And-Shoulders Pattern Bearish Trend
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