Emily Walker
The current value of Cardano is facing uncertainty, with analysis suggesting a possible significant drop in price. A detailed examination of the 4-hour candlestick chart indicates there could be a 15% decline due to a recent downward movement below the Exponential Moving Averages (EMAs).
Bearish Indicators as Cardano Falls Below EMAs
According to a cryptocurrency analyst from SwallowAcademy on TradingView, Cardano commenced the week with four consecutive red candles on the 4-hour chart, resulting in a fall below the EMAs. This situation sets a bearish tone for Cardano that could lead to further short-term losses. Notably, the analysis suggests that there is a lack of liquidity zones near the current price, offering no immediate support for the token.
The nearest support stands approximately 7% below the current level, around $0.83. If this support level is breached, the analyst warns that another 8% decline could send Cardano down to $0.76. Overall, this could signify a swift 15% drop from its present position, which the analyst described as potentially volatile, stating, “Eyes wide open here; it might get bloody.”
Possibilities for a Positive Turn
Despite the prevailing bearish outlook, the same analyst outlined a scenario that could reverse this trend. A robust upward movement that pushes Cardano’s price over $0.98 could change the short-term market dynamics. Such an increase would lift Cardano back above the EMAs, signaling a revival of bullish momentum and lessening the chances for further declines. Should that occur, Cardano might surpass $1.02 and reach between $1.20 and $1.30 in the upcoming days.
Currently, Cardano is trading at $0.9544, reflecting a 1.57% increase in the last 24 hours. There are hopes for a continued upward trend which could negate the bearish outlook.
The forthcoming days will be crucial in determining Cardano’s price direction. If the predicted bearish scenario materializes, it could pose challenges for ADA holders with a 15% correction. Conversely, if the price can rebound above $0.98, it may foster renewed enthusiasm for Cardano to challenge the $1.20 mark, which has not been seen in over two years.