Cardano price has been trading within a rather tight range for close to two weeks now. At its current level, July’s low of $1.0000 appears to be within reach for the bears. The festivities are expected to be characterized by reduced trading volumes. As such, the altcoin may remain within a horizontal channel in the ensuing sessions. Overall, the outlook remains bearish.
ADA has been on consolidation for close to two weeks after a one-month plunge. Its December low of 1.1870, which it hit in the previous week, was last recorded in late July. Since hitting its all-time high of 3.1059 in early September, it has dropped by about 56.09%. At the time of writing, it was up by 5.94% at 1.3565.
On a daily chart, Cardano price is trading below the 25 and 50-day exponential moving averages. Besides, the 50-day EMA has formed a death cross with the 200-day EMA. The pattern occurs when a long-term EMA crosses above a short or medium-term one; which is a bearish signal.
The formation of a bearish flag further points to additional losses in the ensuing sessions. I expect Cardano price to remain within the range of between last week’s low at 1.1870 and along the 25-day EMA at 1.3964.
A move below the horizontal channel’s lower border places the psychological zone of 1.0000 as a viable target for the bears. On the flip side, it may rebound further to along the 50-day EMA at 1.5729.
This post was last modified on Dec 22, 2021, 11:46 GMT 11:46