Cardano has been an ever-trending altcoin for some time. Reasons can range from the coin being a potential “Ethereum killer” to various upgrades that help the network grow. But when you factor in the recent price movement, history changes a bit.
Crypto Capital Ventures analyzed Cardano and described how the coin could fall into the hands of bears.
Cardano about to fall?
According to Crypto Capital Ventures,
“Cardano is in a very clear downward trend. You have to be very careful “
With the current ADA market consolidated in the $ 1 to $ 1.6 range, the chances for the coin to overcome these seem slim. The good news, however, is that even if there is a retracement, it doesn’t last long. A closer look reveals that the last bull market lasted only half the time as long as the last bull market lasted.
With the bull market cut by 50%, the potential downtrend we could enter would also be cut in half. It won’t be a long process.
What are the ADA Safe Zones?
Usually a critical level of support is considered a safe zone. However, Cardano has proven time and again that the $ 1.3- $ 1.5 (larger red rectangle) is an important area, as even the ATH was $ 1.3 in 2018. In addition, the altcoin has been dancing around this area for quite some time.
Since February, the zone has switched from resistance to support to resistance several times (see chart). This movement makes this zone critical to a bull run as converting it into solid support can push the coin up.
In addition, the analysis showed that the coin could not break through more than 4 different resistances. First, the coin fell below the trend lines; second, it failed to turn the 50-day moving average into support. Third, it failed to break the 20-week moving average, and eventually even $ 1.30 and $ 1.50 remained resistance.
If ADA manages to break through all of these resistances, a trend reversal can be confirmed and the market would become bullish. However, if it continues to decline, expect consolidation at $ 1.15 to $ 1.08.
In the short term, however, $ 1.4 is a crucial breaker level that, if broken by Cardano, would put the coin into a bull run.