Cardano price is experiencing a severe sell off that targets liquidity levels from 2020. Key levels have been identified to gauge Cardano’s next potential move
Cardano price is in trouble
Cardano price has seen better days as the decentralized smart-contract token is down 30% since the start of November. On Novemer 21, ADA, the self-proclaimed Ethereum killer token beached $0.30 zone after a week of consolidation. If market conditions persist the ADA could soon auction in the mid-$0.20 price levels.
Cardano price currently trades at $0.30. Like many cryptocurrencies, the smart contract token brokeout of the a bearish pennant formation that began in the $0.32 zone last week. Using classical technical analysis, the pennant can project a probable target zone at $0.25. Bears may also be aiming for the swing low at $0.23 that was established in 2020. The swing low is likely to hold a significant amount of liquidity underneath it.
Invalidation of the bearish outlook could arise if the bulls can hurdle the 8-day exponential moving average at $0.32. In doing so, an additional rally aiming for the 21-day simple moving average near $0.36 could occur. The Cardano price would rise by 22% if the invalidation scenario played out.