Cardano Price Rally Might Be Brief Amid Market Uptrend
On Friday, September 12, the Cardano price surged to $0.90, marking its highest spot in two weeks. This climb follows the broader recovery trend in the crypto market.
The price is edging closer to the critical resistance mark at $1, but some experts foresee a potential decline. A rising wedge pattern on the daily chart signals a possible short-term rally end.
- this pattern links March’s peak highs at the top and June’s trough lows at the bottom.
- As these lines converge, a price crash could follow soon.
Several technical indicators support this negative outlook. Both the Percentage Price Oscillator and Relative Strength Index are declining.
Moreover, the Average Directional Index fell to its lowest as May, hinting at weakening momentum.If these patterns hold, Cardano might fall back to $0.51, representing a 45% dip. To invalidate this bearish view, ADA would need to break through the critically important resistance at $1.20.
Three factors contribute to Cardano’s potential downturn.Firstly, the total value locked in Cardano’s decentralized finance (DeFi) ecosystem has decreased by 45% since December. Secondly, upcoming Federal Reserve actions could trigger a ‘sell-the-news’ event.Lastly, Cardano struggles to compete with other networks; it holds just $40 million in stablecoins compared to the overall crypto assets worth $287 billion.
