Cardano (ADA) Price: New Yearly Lows Underway After Bearish Breakout

Cardano (ADA) has broken down from a consolidation pattern that had been in place since May 12. As a result, a new yearly low is expected.

ADA has been falling since reaching an all-time high price of $3.10 on Aug. 2021. The downward movement has followed a descending resistance line and led to a low of $0.40 on May 12, 2022.

Since then, the price has stopped its decrease and has actually bounced slightly. It is currently hovering just above $0.42. 

The closest support area is at $0.36. This is an important horizontal level that previously acted as resistance (red icons) in May 2018 and then in Jan 2021 (red icons).

The breakout from the latter was the catalyst for the beginning of the upward movement towards a new all-time high.

Therefore,