Cardano continues to perform badly in the market today, sliding a further -2.11% against BTC as the market shakes off the recent exchange attacks. Having lost its fight with the bears again, ADA has fallen off another key support area and will need a bullish BTC market to slow down its descent.
Looking at the ADA/BTC chart over 4hr candles, we can see the token track well inside a bullish falling wedge pattern, typically foreshadowing a trend reversal once the asset reaches consolidation in the lower levels.
Over the more recent price activity, candles have been holding well along the sloping resistance line of the pattern as bullish traders try and push back against the selling pressure.
Fibonacci resistances have performed particularly well in holding this asset down inside the pattern, with the 0.618 and 0.5 fib levels posing significant threats to ADA’s future progress.
Looking at the broad range of EMAs, we can see a strong bearish signal where the faster 50 EMA (blue) has passed below the 200 EMA (red) and both of these have passed through the 500 EMA (yellow). From this signal alone it’s highly likely that ADA will continue to fall throughout the rest of this week unless strong support can suddenly arrive to break this trend.
In the chart above we can see 2 boxes inside channels between the fibonacci support and resistance lines.
In Box 1 we can already see candles have entered into this channel between the 0.382 and 0.236 levels after ADA fell from its key support above. Following the recent Bithumb hack, uncertainty still grips the crypto community as Bitcoin oscillates between $6,650 and $6,750. Along the lower support, we can see a designated early breakout zone where ADA could break off from if stronger support rallies behind BTC in the next 2 weeks.
If support fails, however, then below we have Box 2 between the 0.236 and 0.0 fib levels, where ADA is likely to hold well inside of as the bear market continues. In Box 2 we have the falling wedge consolidation point where it’s likely the asset will start regaining ground and could give investors a very profitable entry point.
Cardano (ADA) Price Targets
Following the recent Tether (USDT) audit, finally, fears of a hollow market have been quashed after Louis Freeh’s law firm confirmed Tether has sufficient US dollar stores to back each issued USDT token. Many crypto enthusiasts believe, including Litecoin founder Charlie Lee, that this development will catalyse the start of a crypto market recovery.
Because of this, price targets and ROI’s will be set from the early breakout target at the 0.236 fib level (2,093 Sats), in anticipation of this improving market sentiment.
Price target 1: A retracement back to the 0.5 fib level at 2,770 Sats (32.35% ROI) which has been a strong resisting level throughout ADA’s price action history.
Price target 2: A breakout over 3,000 Sats should meet strong bearish opposition around the 0.618 fib level 3,070 Sats (46.68% ROI) before correcting.
Price target 3: A final target for this uptrend will be around the psychological resistance at 3,400 Sats (62.45% ROI). From here, ADA will be relying on the explosive support of Korean investors, in particular, to carry it further from here. With a new listing on eToro recently as well, we could see new money flow into this asset from one of the leading cryptocurrency investing platforms.
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