The crypto markets are shrinking slowly with the top tokens maintaining a consolidated descending trend. This has severely impacted the top 8th crypto, Cardano which had just surged beyond the crucial resistance of $0.38.However, failing to rise beyond $0.4 may lead to the price dropping hard, testing the lower crucial levels around $0.32 in the coming days.
Considering the ADA’s last 6 months’ price trend, it soared extremely high, flashing the possibility of a bearish reversal soon. The price maintained a constant higher high formation but the momentum indicator, RSI produced lower highs. This determines that the rally is not backed and hence a trend reversal may be imminent.
As mentioned in the above chart, the price maintained a climbing high, while the RSI quickly fell into a bearish divergence. Moreover, the selling volume is slowly mounting and hence a slight uptick in the selling volume may carnage the trade set-up laid out to reach the higher targets at $0.46, surpassing $0.4 levels.
Hence a daily close beyond $0.4 may save the rally from falling into a deep bearish well that may invalidate the bearish thesis. Else, failing to secure levels beyond $0.42 may thrash the patience of the investors who may take off their profit. In this case, the higher possibility of a bearish reversal towards $0.32 may be quite possible.