#Cardano

𝘾𝙖𝙧𝙙𝙖𝙣𝙤 𝙋𝙧𝙞𝙘𝙚 𝙍𝙞𝙨𝙠𝙨 30% 𝘾𝙧𝙖𝙨𝙝 𝙖𝙨 𝙃𝙤𝙨𝙠𝙞𝙣𝙨𝙤𝙣 𝘽𝙡𝙖𝙨𝙩𝙨 𝘾𝙝𝙖𝙞𝙣𝙡𝙞𝙣𝙠 𝙄𝙣𝙩𝙚𝙜𝙧𝙖𝙩𝙞𝙤𝙣 𝘿𝙚𝙡𝙖𝙮

Cardano price is on track to drop for the sixth consecutive week as the crypto market crash continued. ADA trades at $0.60 today, June 20, its lowest point since April 25, and 55% below the highest point this year.

Technicals point to a further 30% crash as its decentralized finance (DeFi) growth reverses and as Charles Hoskinson laments about the ongoing Chainlink integration.

The weekly timeframe shows that Cardano price peaked at $1.315 in December as the crypto rally accelerated. It then reversed even as Bitcoin surged to a record high.

ADA price has plunged below the 50-week Exponential Moving Average (EMA) as it dropped for six consecutive weeks. At the same time, oscillators like the Commodity Channel Index (CCI) and the Percentage Price Oscillator (PPO) have pointed downwards, confirming the downtrend.

Cardano is slowly forming a giant rising broadening wedge pattern, commonly known as the megaphone. This pattern comprises of two ascending and diverging trendlines.

In this case, the upper side connects the higher highs since January 2023, while the lower side links the lower lows since September 2023. In most cases, an asset often retests the lower side of the channel several times and then blasts upwards.

In this case, a drop below the key support level at $0.516 will confirm the bearish view. This is an important level since it was the lowest swing in February and April, making it a bullish double-bottom pattern.

A drop below that level will signal more downside to the lower side of the rising broadening wedge at $0.40, which is about 30% below the current level. It will then bounce back after dropping to that level, and potentially move to last year’s high of $1.315.