The Cardano price is under pressure as the cryptocurrency sell-off accelerates. The ADA price is trading at $1.1942, which is almost 20% below its Thursday high of $1.4868. Its market capitalization has dropped to $38.17 billion, making it the 5th biggest cryptocurrency after Bitcoin, Ethereum, Binance Coin, and Tether.
What happened: After rallying in the first few days of last week, the price of Cardano started declining on Thursday. It pared some of those gains on Friday and then continued to decline during the weekend. This price action is partly because of profit-taking since the price had reached its highest level on record.
Today, the ADA price is falling partly because of the overall strong dollar and the general sell-off in the crypto industry. Indeed, all major cryptocurrencies like Bitcoin, Ethereum, and Litecoin are trading at a lower price than yesterday’s high.
Turning to the four-hour chart, we see that the ADA price rose to $1.4845 in February this year. After that, the price declined by 33% and reached a low of $1.1980 on March 13. It then continued rising and retested its all-time high of $1.4845 on Thursday last week.
Although not perfect, the pair seems to have formed a cup and handle position, which, in technical analysis is usually a sign of continuation. Indeed, the recent decline can be judged as being the handle of this pattern.
Therefore, this week, we cannot rule-out more gains for Cardano as bulls attempt to move above $1.500. However, a decline below 1.200 could invalidate this prediction.
