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- Cardano price is in a steep downtrend and consolidates above.
- ADA hovers above a 2021 liquidity zone.
- Invalidation of the bullish trend is a breach above the previous range at $0.32.
Cardano price could be setting up for a monstrous decline. When writing all signals point south, the bulls must rally considerably to consider a safe countertrend scenario.
Cardano price is in a free-fall decline
Cardano price currently consolidates in the mid $0.20 zone after enduring a 19% decline on the month. On November 23, the scalable smart contract token hovers within a 10% radius of the 2021 swing low at $0.228.
The swing low is a significant liquidity level that has remained untested since it was first established on January 11, 2021. Cardano would then go on to rally nearly 1200 percent into the all-time highs at $3.10 by August of the same year.
Cardano price currently auctions at $0.2593. While the technicals of an upcoming liquidation seem promising, on-chain metrics are playing devil’s advocate. According to FXStreet’s News Reporter Ekta Mourya, “Cardano addresses holding between 10,000 and 100,000 ADA tokens have added $83 million worth of ADA since November 7.” The high cap interest for Cardano is certainly intriguing, but the technicals have yet to align. Time will ultimately judge who is on the right side of the trade.
ADA/USDT 12/23/22
ADA would then need to establish a consolidation above the aforementioned zone. Under the ideal scenario, the bulls could prompt a countertrend spike towards the $0.40 range established throughout the Fall, resulting in a 57% increase from the current Cardano price.
