• Cardano price is close to breaking out but the bearish clouds are preventing an upward movement.
• A plunge could occur in the next few hours, potentially driving prices down to $0.32.
• A bearish reversal towards $0.32 may be imminent if Cardano does not secure levels beyond $0.42.
Cardano Price Analysis
The crypto markets have been shrinking lately, with top tokens maintaining a consolidated descending trend that has affected Cardano (ADA) which recently surged beyond the crucial resistance of $0.38.
However, failing to rise beyond $0.4 may lead to a sharp drop testing the lower crucial levels around $0.32 in the coming days.
In the past 6 months, Cardano’s price had risen sharply, indicating possibly a bearish reversal soon.
The price maintained a constant higher high formation but the momentum indicator RSI (Relative Strength Index) produced lower highs.
This suggests that the rally is not backed and hence a trend reversal may be imminent.
Price Drop Imminent?
An uptick in selling volume could causeCardano’sprice to plummet and invalidate higher targets at$ 0.46 above$ 0.4 level.
What Can Investors Expect?
Investors can expect Cardano’s prices to drop if it fails to sustain itself above$ 0.42 level and plunge towards$ 0.32 in the near future.
Cardano’s bullish momentum seems unlikely as its RSI has triggered bearish divergence signaling a potential downward trend in its prices within 24-48 hours.