The Cardano price action showcases a continuing descending trend as the selling pressure continues to mount. The volume displays a reduced participation rate ever since the sellers extracted their profit recently, dragging the price too as low as $0.39. Yet the buyers jumped in to accumulate the asset at the discounted rate maintaining high volatility.
Considering the daily chart of the ADA price, two significant patterns emerge. Firstly, the formation of a symmetrical triangle and secondly a bullish breakout. The ADA price has been swinging within a symmetrical triangle ever since the LUNA-UST crisis, slashed the price. And hence the current consolidation is expected to continue which may also include a couple of pullbacks below $0.5 too.
As mentioned before, the price is swinging within a symmetric triangle and hence could continue with the consolidation within the pattern for a pretty long time. Therefore, a pullback may be pre-determined which may be followed by an upswing close to $055. However, after a brief consolidation towards the apex, the price may either breakout to $0.6 or else drop to $0.45 levels. In an extended bearish case, the price may even tank below $0.4 levels too.
Secondly, the candle pattern formed indicates a probable bullish trend that could be fast approaching. Here in the daily time frame, the price broke out of the consolidation following a bullish squeeze.
Bullish squeeze is a three-bar candle which developed on the daily chart, with the second stick below the first candlestick and the third stick below the second one. After a significant squeeze, the fourth candlestick resulted in a notable bullish one painted in green and surpassing the levels of the primary candlestick.
This no doubt indicates a mid-term upward swing which may raise the Cardano (ADA) price towards $0.55 but eventually, a rejection may make its way out. Therefore a descending consolidation may be expected until the end of the monthly trade which may be probably a bearish one.