Cardano price has not evaded the ongoing crypto sell-off. A likely reason for this crypto crash is that Donald Trump is yet to talk or sign an executive order on cryptocurrencies. ADA risks a 20% crash in the short term after it formed a risky chart pattern.
Cardano Price Double-Top Points To More Downside in The Near Term
Technical analysis can help you predict whether an asset will continue rising or continue a downward trend. Double-tops and double-bottoms are highly popular chart reversal patterns. A good example of this is when ADA price formed a double bottom at $0.882 earlier this month. This pattern resulted into a bullish reversal that pushed its value down to to $1.16.
Cardano has formed a double-top pattern at $1.152, where it failed to move above on January 7 and 17. The neckline of this pattern is at $0.882, its lowest point on January 13.
The 100-day and 50-day moving averages are also about to form a bearish crossover, another bearish sign. It also dropped below the psychological point at $1. Therefore, more downside could see the coin drop to the neckline at $0.882, 8.35% below the current level.
Bulls must defend that final support since losing it will push the Cardano price to $0.762, down by 20% from the current level. The bearish ADA price forecast will be canceled if it jumps above $1.036.
Cardano Price Forecast
ADA Price Long-Term Targets Are Bullish
The market tends to have substantial noise in the short term. While Cardano’s short-term outlook is bearish, long-term charts suggest that the coin has more gains.
The weekly chart reveals that Cardano has formed a break and retest (B&R) pattern by moving back to the key support at $0.807. That was an important price since it was the highest swing in March last year. A B&R pattern is usually a continuation sign. It was also the neckline of the triple-bottom at $0.246.
Cardano is now forming a bullish pennant pattern, which has a tall flag pole and a triangle. This pattern will continue to form as long as it is above the support at $0.807. A complete break above the key resistance at $1.326 will increase the possibility of soaring to the all-time high of $3.15,
Cardano Price Chart
Catalysts for Cardano Coin Price Surge
The most important catalyst for the Cardano surge is the Bitcoin price recovery, which analysts expect will continue. Altcoins like ADA thrive when Bitcoin is rising. Further, Cardano will launch the Midnight scaling solution this year and its integration with BitcoinOS.
Charles Hoskinson has hinted that he is willing to partner with other networks, including Terra Luna Classic and Chainlink. All these initiatives will likely make Cardano a more vibrant ecosystem.
The post Cardano Price Forms Risky Pattern, Pointing to a 20% ADA Crash appeared first on CoinGape.
