Can Cardano's July hard fork prevent ADA price from plunging 60%?
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ADA's price is above a key technical support level in the days leading up to the major Cardano upgrade.
Cardano (ADA) has started painting a bearish continuation pattern on its longer-timeframe charts, raising its likelihood of undergoing a major price crash by August.
ADA price in danger of a 60% plunge
Dubbed the "bear pennant," the pattern forms when the price consolidates inside a range defined by a falling trendline resistance and rising trendline support after a strong move downside. Additionally, the consolidation moves accompany a decrease in trading volumes.
Bear pennants typically resolve after the price breaks below their trendline support and, as a rule, could fall by as much as the height of the previous big downtrend, called a "flagpole," as illustrated in the chart below.
As a result, a decisive breakdown below ADA's bear pennant structure could mean extended declines to the level at length equal to the flagpole. In other words, the target for Cardano's price will be $0.20, down over 60% from June 28's price.
In the meantime, ADA shows signs of consolidating inside the pennant's range with its imminent bias looking skewed toward bulls. This opens the door for ADA/USD to rebound from the pennant's rising trendline support near $0.46 to rally toward its falling trendline resistance around $0.60 by July.
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