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The Cardano price has been rallying for weeks now, ever since breaking out from the Ending Diagonal Pattern on the 4-hour timeframe! But is this rally already over extended and in need of a pull back?
On the 1-hour timeframe, we are already seeing signs of weakness on the Cardano price chart. This weakness is currently showing up as an ending diagonal pattern.
If this Head and Shoulder Pattern plays out, there is a very high probability that we might see the ADA price sell-off for a bit before the bullish rally continues later on in the furture.
In this Cardano price analysis, we will be breaking down this key head and shoulder pattern, and explaining exactly what we are watching for on the 1-hour price chart.
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The ADA Head and Shoulder Pattern
The head and shoulder pattern is a bearish reversal pattern that forms when a bull trend is coming to an end and we are expecting to see a price sell-off follow in the coming days.
This pattern offers us key levels to watch for as well as key targets to aim for once the sell-off begins. And for the Cardano price chart, we can see the patten and the key levels clearly on the 1-hour price chart.
However, the pattern is yet to be completed as the ADA price is yet to break through the Neckline region.
Until price breaks through the neckline region on the 1-hour timeframe, this Head and Shoulders pattern will not be ready to be traded.
Final Verdict!
The ADA/USDT price chart is showing signs of weakness on the 1-hour timeframe. However, for this Head and Shoulders pattern to be completed and for the price sell-off to be initited, the Cardano bears must push the Altcoin price below the Neckline region on the 1-hour timeframe.
Once price breaks through this key region there is a very high probability that we might seea more than -10% dump in prices in the coming days.
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