The post Is a Drop Below $1 Imminent? appeared on BitcoinEthereumNews.com.

Cardano (ADA) surged 25% over the past week, breaking above a key resistance level — the upper line of a descending triangle pattern. This bullish breakout initially sparked optimism, with the market eyeing a potential return to its two-year high of $1.32. However, the rally has since stalled. In the past two days, buying pressure has weakened, causing ADA’s price to consolidate within a narrow range. Cardano Loses Steam as Traders Watch From the Sidelines Last week, Cardano’s rally pushed its price above the upper line of the bearish descending triangle pattern it had traded within in the weeks prior. BeInCrypto reported that this bullish breakout initially fueled optimism as traders set their sights on a potential reclaim of its two-year high of $1.32. However, due to waning buying pressure, ADA’s price has consolidated within a narrow range over the past two days. It has faced resistance at $1.11 and has found support at $1.05.  Cardano Descending Triangle. Source: TradingView When an asset’s price trades within a narrow range, it indicates a period of indecision in the market, where buyers and sellers are evenly matched. Usually, consolidation precedes a significant price movement as traders wait for a breakout or breakdown to signal the next trend direction. With technical indicators showing plummeting buying activity, ADA’s price might shed some of its recent gains.  For example, readings from its declining Aroon Up line support this bearish outlook. As of this writing, the indicator is in a downward trend and has been since the price consolidation started. Cardano Aroon Up Line. Source: TradingView The Aroon indicator measures the strength and direction of a trend by analyzing the time since an asset’s recent highs (Aroon Up) and lows (Aroon Down). When the Aroon Up line is declining, the asset’s recent highs are becoming less…

---

Filed under: News - @ January 6, 2025 8:27 am