Cardano’s 18% Breakdown Setup Is Clear — But So Is Its Only Escape Route
Cardano faces a potential 18% breakdown due to a bearish head-and-shoulders pattern, but cooling selling pressure offers a potential escape.Summary
The Cardano (ADA) price is currently consolidating while approaching confirmation of a bearish head-and-shoulders pattern on the daily chart. A decisive close below the downward-sloping neckline could trigger an 18% measured move, targeting the $0.24 area.
However, on-chain data suggests potential resistance to this breakdown. The spent coins age band metric has sharply declined by nearly 60%, indicating fewer holders are moving tokens, which historically preceded short-term rebounds. Furthermore, the Chaikin Money Flow (CMF) indicator, which tracks capital inflows, is pressing against its descending trend line.
The escape route for ADA involves holding above key support levels like $0.35 or $0.33, ideally accompanied by a breakout in the CMF above zero. If the price breaks below $0.29, the bearish scenario becomes the base case, targeting $0.24; conversely, reaching $0.48 would invalidate the entire bearish pattern.
(Source：BeInCrypto)