Hello Traders,

From the charts, it clear that Cardano has been in sharp down trend and inside a downwards channel. There have been multiple touches on both upper and lower lines and price could fall to next level of major support at $0. 40 region. This would be a great accumulation opportunity in my opinion.

Bearish divergence can be seen between first and second peaks at all time highs which confirmed a trend reversal. However, since then the strength of the pattern is becoming weaker as lower volume peaks can be observed on a macro level. Bullish breakout of the upper line and a sustained retest of might invalidate the structure and set Cardano for its next major leg.