Cardano Bearish Pennant Spells 50% Price Plunge
Cardano's price chart is showing signs of a potential decline, according to recent analysis. A bear pennant has formed on the daily chart, with ADA trading between a descending resistance trendline and an ascending support trendline. This triangular structure is tightening, indicating that a breakout may be imminent.
The bear pennant typically resolves in the direction of the preceding trend once the price breaks below its lower boundary. Traders can calculate the downside target by subtracting the flagpole's height from the potential breakdown point. For ADA, a decisive daily close below the pennant support near $0.15 could confirm the bearish continuation setup.
The resulting measured target sits near $0.075-$0.08, including the chart's projected objective around $0.079. This would amount to a decline of roughly 50% from current prices. ADA may encounter interim support near $0.13 and $0.11 before reaching the projected pennant target.
Conversely, a close above the pennant resistance and the 50-day exponential moving average near $0.174 would weaken the immediate breakdown scenario.