Since August 21, the Cardano price has reached three new highs and four new lows. The formation of an increasing wedge can be seen by connecting these swing points with trend lines.
This technical pattern is bearish, and a break of the lesser trend line forecasts an 18% drop to $2.29, as calculated by adding the space between the first swing high and low to the escape point.
Due to the occurrence of many support levels, this crash will not be an instant change. Falling prices will meet the $2.47 demand barrier, which if broken will drive Cardano's price to $2.38. While the selling pressure is likely to be excessive at this point, investors should expect a retest of the $2.29 level.
The bulls have nothing to worry about if ADA stays above the lower trend line of the increasing wedge. If the technical pattern's upper limit is breached, it will signal a buyer's renaissance. However, the bearish thesis will be debunked if ADA establishes a new all-time high above $3.11.