The Cardano price with the fresh bearish action dropped below the crucial support that it held for nearly a month. Even though the volume remained relatively low, the bears managed to drag the price below the crucial levels. However, a more negative impulse is all set to mount on the price due to which, the ADA price may form new lows before the end of 2022.
ADA price previously broke from the initial support levels at $0.45 and by slicing through the current support at $0.3, the token has formed a bearish pattern On a daily chart, the Bollinger bands have broken after being compressed for some time, the MACD is flashing possibility of a bearish cross-over while RSI has hit the lower support.
Despite huge bearish clouds hovering over the ADA price, the token is believed to surge any time from now.
As displayed in the above chart, the ADA price is trading within a falling wedge that began at the start of 2022. Moreover, the price has already reached the lower support and hence a rebound appears to be imminent. With a rebound, the ADA price is believed to reclaim its lost levels above $0.3 initially and later elevate to test the upper resistance zone between $0.55 to $0.59. This could be considered as a trend reversal zone if flipped could lay down a significant upswing ahead.
Currently, the entire cryptospace appears to be pretty uncertain as the support majority of the assets are failing to underpin their support levels. With the bearish close for the day, an upswing may trigger a firm recovery toward the upper resistance until the weekend.