Most of the cryptocurrencies in the space are undergoing a nanoscopic correction. Where-in the bulls are attempting hard to prevent further loss as the price appears to have loosened the grip. Cardano price earlier smashed the ATH, being among the assets that recovered 100% losses incurred from the mid-may crash. However, the ADA price still failed to hit the milestone at $3 as the selling pressure initiated to accumulate.
The selling pressure dragged down the price close to the immediate support levels at $2.60. However, yet the fear of a continued plunge still hovers the rally as the ADA price is stuck up within a descending triangle. And in most cases, the breakout from a descending triangle results in a substantial downtrend.
Also Read: Cardano launches regulatory compliance solution! Analyst Predicts ADA Price to hit $13!
Currently, ADA price is trying very hard to invalidate the descending triangle. The closer to the end of the triangle it gets, the fear of plunging below the support levels increases. However, the 200-day MA still remains as the major support to be held and it’s pretty distinct.
Extending the MA line, it could intersect the triangle at its tip. However, the ADA price could ultimately consolidate until it reaches the tip of the triangle where-in 200 day MA also rests. Therefore, the price could attempt a strong rebound to fight the MA support levels. This could conclude the extended consolidation phase with a bullish note.
But on the contrary, the weakness in the volume points out a bearish signal that could slash the price between $2.2 to $2.4. However, the launch of Cardano smart contracts is on the cards which could provide a tough fight for Ethereum as an open-source platform. And hence a notable flip with the price movement can be fast approaching. But a large leap with 100x in Cardano price is unfavourable as it would need a 3 trillion market cap for the asset.
However, the Cardano price showcased enough strength in the past couple of days. Where-in it successfully attained the 3rd position adding up nearly $31 billion market cap. And hence the ADA price will definitely not remain calm for more time. As the Grayscale investments also have picked up, a notable rebound could also be on the cards.
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