Altcoin Season Cancelled? Cardano Faces 30%+ CrashHonestly, most altcoins are stuck in a bearish rut. We haven’t seen any of them making new highs instead, they're hitting fresh lows. BINANCE:ADAUSDT is no exception, staying stubbornly below the EMA200 line. So, the talk of an alt season? We’re not buying it. Let’s zoom in on Cardano and see what’s really going on.
On the daily chart, Cardano is digging in below the EMA200 line and the bearish trendline, reinforcing the strong bearish trend. A rising wedge pattern had formed, but instead of breaking out, it got hit with a series of heavy bearish candlesticks. And just to keep things interesting, the MACD has thrown in a bearish crossover for good measure.
Recently, Cardano took a nosedive, breaking out of the rising wedge with a surge in trading volume, not exactly what the bulls were hoping for. To add insult to injury, the MACD line slipped below the signal line, signaling that the bears were tightening their grip.
With all these bearish signals lining up, we’re eyeing a possible slide toward Target Area 1 at 0.2506 or even a deeper dip to Target Area 2 at 0.2197. These targets are mapped out using the Fibonacci ratios of 1.272 and 1.618.
However, there might be some hope for the bulls if the price breaks above the resistance level at 0.3815.
Disclaimer: "This analysis is purely for educational purposes and shouldn’t be taken as a recommendation to go long or short on Cardano."
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