Cardano’s surge, like most altcoins, seems to have come to standstill. The price of ADA has dropped approximately 23% in the last week and 6.7% in the last 24 hours.
Cardano 1-hour chart
At press time, ADA was trading at $0.1140, and, by the looks of it, it might slide lower in the next 24 hours. The reason for the bearishness is due to the bearish divergence formed on the 1-hour time frame. The price has formed a lower low while RSI has formed a higher high. This indicated a drop.
Bearish Flag?
The chart below shows the formation of a potential bearish flag. However, the downward breakout before the completion might just be a shakeout phase to squeeze the shorts before actually crashing.
Considering this to be fakeout, the price will eventually head down, hence, the overall position to be in ADA is short. Opening a short position at $0.1142 or $0.0115 with a take profit at $0.10166 would yield a profit of 11% while risking 2.38% which is where the stop-loss will be placed [at $1172].
Alts Vs. BTC
Source: TradingView
Lately, altcoins have been surging and this could be explained by comparing altcoin dominance with bitcoin dominance. The diverging paths of these with decreasing BTC dominance has paved a way for altcoins to rise again.
This level of altcoin dominance was last seen in early to mid-2018 and in mid-2017 when the historic bull run began to take shape. Although it should be noted that altcoin rallies are short-lived and can reverse anytime soon. Perhaps, this is what will drive the altcoins down again.
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