Over the past week, the Cardano (ADA) price seemed on track to break out of the bullish descending wedge.
However, changing market conditions delayed its potential breakout, with the risk of invalidation growing.
Cardano’s price has completely disregarded investor sentiment in recent weeks, causing a decline in optimism due to broader bearish signals.
The failure to break out during key rallies has led to a significant decline in investor confidence, raising concerns of further downward price movement.
The drop in activity among large wallet holders or crypto whales, who have reduced their transaction volume by 32%, compounds this effect, indicating decreased interest and confidence in ADA's short-term prospects.
Cardano’s price at $0.35 faces the risk of failing to break out of the descending wedge, leaving it vulnerable to a drop to $0.31. A recovery requires ADA to flip $0.40 into support to invalidate the bearish outlook.
