Weak ADA price technicals put Cardano at risk of testing June lows.
The price of Cardano risks falling by over 20% in August as it enters a breakdown stage of a classic technical pattern that could be offset by some promising fundamentals., the pattern develops when excessive speculation drives the prices higher quickly, eventually leading to a"bull trap" situation. As it forms, the price trend undergoes three stages — Lead-in, Bump, and Run — as shown below.
In the Run stage, the price breaks below the support from the Lead-in trendline. Currently, Cardano appears to have entered the Run phase of its BARR pattern, as shown below.If the pattern is confirmed, BARR's downside target is measured after subtracting the breakdown point at the support line from the pattern's maximum height. That brings ADA's price target near $0.22 in August or early September, down 20% from current levels.
Conversely, an ADA rebound can reach the 50-day exponential moving average near $0.30 in August, up 5% from the current prices.Furthermore, flipping the wave into support could see a further run-up toward the 200-day EMA near $0.34, up around 30% from current price levels.On-chain fundamentals, however, could offset the bearish risks for Cardano.
Notably, whale and shark wallets holding between 100,000 and 1 million ADA have accumulated $116.1 million worth of Cardano since May 2023, raising their net holdings to the highest levels since September 2022.This period of Cardano accumulation coincides with itsSimply put, ADA whales and sharks have bought the price dip, and are betting on future gains.Additionally, the ADA accumulation period happened alongside growth in Cardano's key network metrics in the second quarter.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cardano (ADA) Whales Now Hold Highest Levels of ADA: Pump Incoming?Whale activities on Cardano have increased, indicating a potential price increase.
Read more »
Cardano Blockchain Transactions Jumped 49% Last Quarter as ADA Sentiment Grew.Cardano blockchain activity grew in both value locked and transactional metrics quarter-over-quarter (QoQ) amid technical improvements and a rise in developer interest, a MessariCrypto report found. By shauryamalwa
Read more »
EUR/JPY Price Analysis: Bulls comfortably consolidate above the 20-day SMA despite weak European dataThe EUR/JPY rises for a second consecutive day, standing above the 156.50 zone. The EUR reported weak Industrial data, which led to a decrease in German bond yields. BoJ’s summary of opinions of July’s meeting hinted at a possible YCC liftoff. At the start of the week, the Euro weakened against most of its rivals on the back of weak industrial data but held gains against the JPY.
Read more »
Monthly costs for homebuyers rise nearly 20%The average rate on 30-year fixed mortgage rose to 6.9% this week.
Read more »
The Top 20 Most-Followed Male K-Pop Idols On Instagram in 2023 | allkpopInstagram has become a go-to destination for K-Pop enthusiasts to stay updated on their favorite idols' day-to-day lives.K-pop idols use their perso…
Read more »
Chicago weekend shootings: 6 dead, 20 hurtThe victims' ages range from 8 to 52.
Read more »