Cardano price (ADA) fell more than 3% on June 19 after falling more than 30% in the past two weeks. Is ADA Price Heading For Its Fourth Red Weekly Candle In A Row?
No respite for Cardano price bulls
On June 19, the price of ADA fell more than 3% to a daily low of $0.257 as traders continued to weigh in on Cardano’s mention in a list of crypto assets that the US Securities and Exchange Commission (SEC) considers to be “unregistered securities.”
in addition The Federal Reserve’s hawkish guidance last week didn’t help the ADA price either, another 50 basis point hike is now likely in 2023. Higher rates typically reduce investor appetite for risky assets like Cardano.
Meanwhile, there is open interest in derivatives linked to ADA he dropped to about $111 million, the lowest since January 2021.
The last 24 hours saw around $360,000 worth of liquidations, with long positions losing the most at $341,320. In other words, more bullish traders closed their positions by selling the ADA, which likely added to the downward pressure on June 19.
In addition, the intraday decline in ADA prices on June 19 coincided with a 0.15% rise in the US Dollar Index (DXY). These inverse moves may break their daily positive correlation coefficient from the current high of 0.82 in the coming days.
ADA bull vs. bear scenarios
Cardano’s bullish traders showed resistance to the SEC’s crackdown two weeks ago, as confirmed by a bullish rejection candle on June 5.
ADA has risen more than 15% since then, but remains “oversold” on the daily. relative strength index (RSI) under 30
These technical indicators suggest a possible extended ADA consolidation or recovery period.
Moreover, a descending triangle may come into play if this bullish scenario plays out. This upside move will represent a target of $0.30 over the next few weeks, which is a 16.5% upside from current price levels.
Conversely, a descending triangle scenario is likely to lead to a 12% decline towards $0.226 over the next few weeks – a potentially significant support area.
This article does not contain investment advice or recommendations. Every investment and trading step involves risk and readers should do their own research when making decisions.