Bearish breakthrough on Cardano expected to be triggered by price consolidation
The price of Cardano is now forming a declining triangle pattern.
If this pattern breaks out, the price may fall 17% to $0.351.
If the daily candlestick closes above $0.492, the bearish thesis will be invalidated.
A breakthrough from the current consolidation might happen shortly, sending the price of Cardano (ADA) down by double digits to important support levels.
With a peak of $0.810 in 2024 and a low of $0.396 on April 13, the price of Cardano fell 51%. Ever then, ADA has been forming three lower highs while consolidating above the $0.426 support line. Using the distance from the initial swing high and swing low to the breakout point at $0.426, this technical pattern, known as an ascending triangle, predicts a 17% collapse to $0.351.
The negative perspective is supported by the fact that the Relative Strength Index (RSI) failed to break beyond the mean level of 50, as mentioned before. Therefore, the negative trend from the 51% drop is expected to persist and the Cardano price will likely continue its decline. On the other hand, ADA may take a breather around $0.392 before achieving its $0.351 theoretical goal.
Conversely, Cardano pricing would get the necessary boost if the market outlook were to improve. Assuming this scenario plays out, the ascending triangle and bullish thesis would be rendered useless if ADA were to generate a definitive candlestick close above $0.490.
The price of Cardano may retest the $0.550 mark after a 12% rise if the current upward trend continues.
