Cardano price could slide to lower levels before ADA bulls prepare to reverse a period of underperformance. The Ethereum Destroyer is likely to hit the January 10th low of $ 1.07 before dropping to the lower bound of the popular chart pattern at $ 1.04.
ADA price is weakening as declining momentum intensifies
Cardano forms a falling wedge on the daily chart as price continues to make lower highs and lower lows. The Arms Index (TRIN) indicates that there are now more sellers than buyers in the market, suggesting the token could fall lower to test key support levels before a rally occurs.
The first line of defense for Cardano price is at the December 4th low ($ 1.18). Cardano may pause from June 23rd low ($ 1.1) before slipping to January 10th low ($ 1.07).
Additional selling pressure could push Cardano price down towards the lower bound of the corrective technical pattern at $ 1.04.
However, if buy orders rise, ADA price could be heading towards a higher target of the 61.8% Fibonacci retracement level, which coincides with the August 3rd low ($ 1.26). ADA will face increasing resistance at the 21-day SMA at $ 1.30 and then at the 50% retracement ($ 1.33).
Other barriers could appear at the 50-day SMA ($ 1.35) before Cardano hits the upper bound of the pattern at $ 1.39, which coincides with the 38.2% fib retracement level.
Breaking the above resistance level could increase ADA 40% to $ 1.95, a bullish target set by the corrective technical pattern.
However, before it can hit its bullish target, ADA must also hit the 23.6% fib retracement level at $ 1.47, the 100-day SMA at $ 1.69, and the 200-day SMA at 1.69 Break through USD 1.81.
You can see the ADA prices here.
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