Cardano (ADA) price rose from $ 0.48 on May 30 to $ 0.68 on May 31 — a 45% rally in less than 48 hours. But the ADA/USD failed to continue its rally up and down almost 13.75% from its weekly high.
ADA price: bear market vibration
The Cardano price retreated sharply on June 1, giving up a portion of its guaranteed profits in the previous two days. The question now arises whether the ADA / USD pair can outperform the recovery trend, in particular trading almost 80% lower in September 2021 it was 3.16 US Dollars.
Interestingly, ing backwards backwards started after the ADA tested the 50-day exponential moving average (EMA 50; red wave in the chart below) as resistance. Also, the pair moved lower along with broader corrective sentiment on cleaner assets, including Bitcoin (BTC) and the S&P 500 (SPX).
Now, Cardano tokens have the risk of further price corrections, according to Digital Trend, a financial analysis contributor at SeekingAlpha, note that the ADA has seen sharp rebounds in the past that have been bull traps, he added:
“In March, we saw the ADA move from south of $ 0.80 to over $ 1.24 in a few weeks. This, to me, looks like another fake-out.”
Several fundamental factors also support the bearish outlook. On June 1, the Federal Reserve will begin unwinding its $ 9 trillion asset portfolio, likely make another headwind for risk assets, including Cardano.
So what does that mean? Is it a straight down market? Do we know all is well if nothing bad happened on the first day?
How do you navigate this?
– Adam Cochran (adamscochran.eth) (@adamscochran) June 1, 2022
“I don’t think we know the impact of QT [quantitative tightening] just not yet, especially because we haven’t done a slimming down of the balance sheet much in history, ”Dan Eye, head of investments of Fort Pitt Capital Group, toward Market Watch, added that removing liquidity from the market would “affect multiples in valuation to some degree.”
Cardano rega cat bull pennant
From a technical perspective, Cardano may continue its recovery trend in June due to a bullish continuation pattern.
The ADA has incorporated the depth of what appears to be a “bullshit”, confirmed by price fluctuations in the triangular structure after a large movement, called a “flagpole.”
As a rule, the bull flag is decided after the price falls above the trend line and rises to the top of the flag pole.
In other words, the bullish target is $ 0.77 in June, up more than 25% from the current price.
ADA / BTC see the same upward setup
The ADA has thickened the setup of similar bull flags against Bitcoin, increasing the likelihood of an uptrend for the ADA / BTC pair in June.
As a result, the breakout determines the ADA / BTC above the pennant upper trend line could rise to 0.00002355, up 23% from the current price.
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