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The current technical situation on Cardano’s charts suggests that the project’s native token, ADA, will end the last 2 weeks of 2022 with massive losses. Several price catalysts that lined up last week have yet to have the expected impact on the altcoin’s price. This could result in traders exiting their positions for the last-minute Christmas rally.
Following the euphoria of a lower US inflation print on Tuesday, ADA’s price was firmly rejected after attempting to test a red descending trend line on its charts. This rejection led to a price slide which was further accelerated this past Friday.
ADA is therefore not in good shape to withstand the current market turmoil. In addition, the fact that it is trading away from the bearish trend line again means that hopes for a bullish breakout are evaporating.
Traders may look to exit their positions built up after the Christmas rally, which will trigger more sell-offs next week. This sell-off would bring the value of ADA down to around $0.194.
ADA is trading at $0.2639 at press time following a 1.49% drop in price over the last 24 hours according to the crypto market tracking website, CoinMarketCap. The altcoin has also weakened against Bitcoin (BTC) and Ethereum (ETH) by 1.36% and 0.93% respectively.
The daily RSI on ADA’s chart suggests that ADA’s price will break below its current 3-day consolidation. This bearish thesis is also supported by the fact that the 9-day EMA is positioned below the 20-day EMA line.
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