- The Cardano price was in a consolidation phase and formed a rising wedge pattern.
- A break from the lower trendline is likely to pull back 13% to $ 2.47.
- If ADA climbs higher and creates a higher high above $ 3.11, the bearish thesis will end.
Cardano price has rolled up since the August 23rd high and is showing signs of an impending decline. ADA has to break the all-time high to invalidate the bearish thesis.
The Cardano price determines a directional bias
Cardano price has made three higher highs and four higher lows since August 21. The connection of these swing points with trend lines shows the formation of a rising wedge. This technical pattern is bearish, and a break in the bottom trendline forecasts an 18% decline to $ 2.29, determined by measuring the distance between the first high and low and adding it to the breakout point.
However, this crash won’t be a quick move down due to the presence of multiple levels of assistance. The falling prices will hit the demand limit of $ 2.47, which will push the Cardano price down to $ 2.38. While selling pressures are likely to ease here, investors should expect a retest of $ 2.29.
ADA / USDT 4 hour chart
As long as ADA stays above the lower trendline of the rising wedge, the bulls have nothing to fear. If the upper limit of the technical pattern is exceeded, it indicates a resurgence of buyers. However, the bearish thesis will not be invalidated until ADA hits a new all-time high above $ 3.11.
In such a case, the Cardano price could rise to $ 3.37, which coincides with the Fibonacci expansion level of 161.8%.