Cardano Faces Potential Drop to $0.54 If Support Line Fails
Analyst Ali Martinez highlighted Cardano's current position within a Descending Channel, indicating potential bearish outcomes if critical support levels fail to hold.
Key Points
- Cardano is trading inside a Descending Channel, which shows consolidation toward downside between two trendlines.
- The top line reflects lower highs and the bottom line lower lows, with resistance expected at the top and support at the bottom.
- A breakout above the channel indicates bullish momentum, while a fall below suggests bearish trends.
- Currently, Cardano is retesting the midway line of the channel at approximately $0.63.
- If this level fails, a decline to $0.54 could occur, representing a 17% drop from the current price of around $0.65.
- In contrast, XRP is trading within an Ascending Channel, with significant resistance at $2.22 and a potential target of $2.40 on breakout.
