Cardano

Solana

when

Bitgert

Amid a recent upswing in the crypto market, the <a href="https://coingape.com/price/cardano/" rel="noopener noreferrer nofollow">Cardano price</a> showed a notable reversal from the 100-day EMA slope at $0.57. This positive turnaround uplifted the coin value to 20% within a week to hit a high of $0.683. However, overhead supply at this barrier hints the traders are selling at a bullish swing which promotes the formation of bearish reversal patterns.
Also Read: <a href="https://coingape.com/sponsored/bitgert-coins-price-surge-defies-the-market-trend-of-solana-and-cardano/" rel="noopener noreferrer nofollow">Bitgert Coin’s Price Surge Defies the Market Trend of Solana and Cardano</a>
<h2 id="cardano-price-recovery-at-risk-as-bearish-setup-looms-span-style-font-weight-400-span">Cardano Price Recovery at Risk as Bearish Setup Looms&nbsp;</h2>
<figure style="width: 100%" class="wp-caption alignnone"><img decoding="async" src="https://s3.tradingview.com/snapshots/t/TvOd0Nic.png" alt="BINANCE:ADAUSDT Chart " width="1946" height="937">
 <figcaption class="wp-caption-text">
 Cardano Price| Tradingview
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</figure>
The <a href="https://coingape.com/sponsored/solana-and-cardano-prices-dip-while-bitgert-coins-value-skyrockets/" rel="noopener noreferrer nofollow">Cardano coin</a> entered the current correction trend in mid-March when the price reverted from a high of $0.81. The bearish pullback tumbled the altcoin value by nearly 30% to hit a low of $0.569.
<blockquote>
 While the current market recovery pushed the ADA price to $0.636, the overhead supply at $0.683 barrier hints traders are selling this asset at a bullish swing. The formation of the bearish candle-evening star at resistance indicates a local top developing which may plunge the Cardano price to $0.57 support.
</blockquote>
An analysis of daily charts shows downswing will reverse the formation of a reversal chart pattern called the head and shoulder pattern. This bearish setup commonly spotted at the market top suggests a shift in trend control toward sellers, signaling a significant correction may be in progress.&nbsp;
However, the pattern’s validation hinges on ADA’s price dropping below the key neckline support of $0.57. Losing this support will also plunge this altcoin below a long-coming trendline which carried a recovery trend for the past five months.
The post-breakdown fall will prolong the correction trend to $0.46, registering a potential loss of 18%.
On a contrary note, if the buyers defend the rising support trendline, the buyers will have an opportunity to counter and invalidate the bearish thesis.
<h2 id="b-technical-indicator-b">Technical Indicator:</h2>
<ul>
 <li style="font-weight: 400;" aria-level="1">Relative Strength Index: The <a href="https://coingape.com/glossary/rsi-relative-strength-index/" rel="noopener noreferrer nofollow">RSI</a> slope lowering below the 50% floor indicates the market participants are turning bearish on this asset.&nbsp;</li>
 <li style="font-weight: 400;" aria-level="1">BB Indicator: The downswing in the lower boundary of the <a href="https://coingape.com/education/bollinger-band/" rel="noopener noreferrer nofollow">Bollinger band</a> indicator indicates the sellers are driving a high momentum downfall.</li>
</ul>
The post <a href="https://coingape.com/markets/lower-top-formation-puts-cardano-price-at-risk-of-losing-0-5/" rel="noopener noreferrer nofollow">How Lower Top Formation Puts Cardano Price at Risk of Losing $0.5 Support</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

How Lower Top Formation Puts Cardano Price at Risk of Losing $0.5 Support

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