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It is likely that the price of cardano will continue its short-term decline if bears can push prices below $0.13
The price of ADA plummeted to less than $0.14 as the wider settlement of the cryptomeda market sees a downward trend in most digital assets. Bitcoin (BTC) fell again below $18,000, while Ethereum (ETH) fell to around $546. Yesterday, the price of Stellar Lumens (XLM) went up over 21%, but is currently below 7% as the altcoins are in red.
The short-term technical framework for the ADA/USD currencies suggests a bearish outlook, which means that the cryptomime may trade as low as $0.10 in the next few sessions. Rejection of the current price will gain momentum following confirmation of a sell signal set on the 4-hour chart.
At the time of writing, the price of Cardano versus the US dollar was around $0.138, down over 5% in the last 24 hours.
ADA/USD could fall to $0.10
4-hour ADA/USD chart. Source: TradingView
The current price for Cardano is below 20-EMA ($0.143) and 50-EMA ($0.148). These price levels previously anchored the ADA, but now offer stubborn resistance levels.
Notably, the price is limited by the upper limit of a downward parallel channel, the scenario of a recent rejection that saw the ADA/USD pair drop from highs of $0.150 to $0.136.
The ADA/USD currency pair is currently attempting to sustain a slight rebound above the midline of the parallel channel. But with the RSI stuck below 50 points and the overall downturn outlook in the cryptomime market, further declines are likely.
If the bulls can’t hold $0.136, the price of Cardano may fall to the lower limit ($0.130).
4 hour ADA/USD chart showing price within downward triangle pattern. Source: TradingView
The downward triangle pattern is another technical indicator that points to the short-term downside perspective for ADA/USD. As this pattern usually suggests a continuation of the bearishness, the 4-hour chart shows that a collapse below the triangle pattern is likely. If further losses occur, the price of Cardano may fall more than 23% to $0.10 before the bulls commit to a recovery.
The 4-hour chart, however, will likely show a buy signal in the next few sessions. If the setting is validated by a red candle nine, a rebound may take the ADA/USD currency pair to highs of $0.18.