Briefly –
- Cardano witnessed its price entering a consolidation phase, creating a climbing wedge pattern.
- Breakout from the low trend-line might lead to 13% retracement towards $2.47.
- If Cardano rises to produce a higher high beyond $3.11, it will invalidate the bearish narrative.
- Cardano had seen its price coiling up since 23 August upswings. For now, the alternative coin depicts an upcoming plunge. The token will have to overcome its obstacles and trade above its ATH to cancel the bearish outlook.
Cardano on Directional Bias
Cardano has formed four higher lows and three higher highs since 21 August. Analysts connected the coin’s swing points with trend-line, forming a climbing wedge shape. The technical pattern supports bearishness, and breaching the low trend-line constitutes an 18% plummet towards $2.29. That is the result of measuring the range between the initial swing low and high and adding that to the breakout level.
Meanwhile, the plunge does not translate to a drastic drop. That is because of the several support zones that might hold ADA from plunging lower. For instance, Cardano’s losses will meet the demand barrier at $2.47. Breaking beneath this mark will push ADA down towards $2.38. Though the selling pressure has higher chances to fade at this point, ADA has magnified the probability of retesting the $2.29 level.
Meanwhile, if ADA stabilizes over the lower trend-line of the climbing wedge, bulls can have confidence in the market. If the upcoming sessions see the market breaching the upper trend-line, it will confirm buyers’ resurgence. Nevertheless, Cardano will cancel the bearish attitude by creating another ATH above $3.11. In such reactions, ADA’s price may head towards $3.37 to coincide with the 161.8% FIB extension zone.
On the other crypto news, Venezuela sees a cryptocurrency mining boom due to the nation’s cheap electricity. The lower energy rates in the region created incentives for BTC miners. However, only a few that can afford the mining infrastructure enjoy the rates.
That is according to reports by Bitcoin.com. High electricity consumption and costly machinery have been a challenge for crypto miners to overcome. However, that hasn’t stopped the mining activities as interested parties have worked to solve the issue.
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