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- Cardano price is at a 20% loss in market value on the month.<\/strong><\/li>\n
- The technicals show ADA in a strong downtrend above a 2021 liquidity zone.<\/strong><\/li>\n
- Invalidation of the bearish thesis will require a hurdle above the $0.32 resistance barrier.<\/strong><\/li>\n<\/ul>\n
Cardano is on its way toward 2021 price levels. Buying the dip could lead to an early\u00a0loss of capital in 2023.<\/p>\n
Cardano price points south<\/strong><\/h2>\n
Cardano price continues to stair step its way south as the bears have forged a 20% decline since the start of the month. On December 25, ADA shows confounding evidence of full control from the bears. The mid- $0.20 zone is acting as resistance for bulls in the market.\u00a0The weekly low is within arms reach at $0.246 and could be moments away from\u00a0being liquidated.\u00a0<\/p>\n
Cardano price currently auctions at $0.256. On December 23, the bulls re-engaged with the 8-day exponential moving average for the forest time after landing in the mid-$0.20 zone. The bears quickly rejected the bulls’ attempt to reconquer<\/a> the indicator and produced an indecision candlestick a day later.\u00a0<\/p>\n
At the time of writing, the market is 6 hours away from closing. If market conditions persist, the bears will produce a bearish engulfing daily candlestick, solidifying the third and final piece of a developing shooting star reversal pattern.<\/p>\n
Considering these factors, The classical technical analysis pattern could be the catalyst<\/a> bears in the market are looking to add to their positions. The next bearish target zone lies 9% above ADA’s current market value at $0.228. The target zone is a liquidity level that has remained untagged since it was first established in January of 2021 during Cardano’s infamous 10x bullrun.\u00a0<\/p>\n
![\"tm\/ada\/12\/25\/22\/\"](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/ADAUSDT_2022-12-25_11-58-21-638075879492345148.png\")
<\/a><\/p>\nADA\/USDT 1-Day Chart<\/small><\/strong><\/p>\n
The bulls will need to establish serious momentum to void the bearish potential. A breach above the 8-day exponential moving average at $0.265 could catalyze<\/a> a spike towards the other side of the previous trading range, where the 21-day simple moving average hovers at $0.28. The Cardano<\/a> price would rise by 10% if the bulls were successful.<\/p>\n
\n - The technicals show ADA in a strong downtrend above a 2021 liquidity zone.<\/strong><\/li>\n