The slide in the crypto market on Thursday has exposed Cardano to downside risks below the 1.83 price level, boosting bearish ADA price predictions.
The Cardano founder Charles Hoskinson has aired his views on the recent downside in cryptos and blames the infrastructure bill recently signed into law by US President Joe Biden as being responsible. The bill contains a so-called “crypto mandate” requiring all US-based crypto exchanges to report all crypto transactions directly to the Internal Revenue Service (IRS).
Furthermore, fears that impending rate increases around the world will move money out of the crypto markets and into fixed-money assets are also drying up demand for several crypto assets.
Cardano is down 5.38% on Thursday. Data from Intotheblock shows that 70^% of Cardano wallet addresses are carrying unrealized losses, while 30% are in the green. The data piece also indicates that support below $1.80 is waning. The bearish ADA price predictions coming into the market are pulling on this data piece and the picture on the charts for encouragement.
The descending triangle on the daily chart could be critical to near term price action, as will the 200-day moving average, which has been breached. Price action has violated the triangle’s lower border. A closing penetration below the triangle opens the door for a potential measured move, which could move as far down as 1.264. This move needs to take out 1.499 along the way. Below the price target for the measured move, the 1.019 support (19 May, 22 June and 20 July lows) becomes the pivot standing between price action and new multi-month lows.
Conversely, failure to break the triangle may lead to a bounce that targets 2.104 initially. 2.387 and 2.714 are additional targets to the north, but continued bearish bias turns any of these levels into potential price points to reinforce short positions.
Follow Eno on Twitter.
This post was last modified on Nov 18, 2021, 18:27 GMT 18:27