Cardano (ADA) Surrenders Yearlong Support; Another 50% Slump Impending?

  • ADA has lost the support floor at $0.35.
  • The daily and weekly RSI have breached their respective optimistic divergence trend lines.

Cardano (ADA) has followed the broad market cues. And that had meant price declines since August last year when the alt explored the $3.10 ATHs. The downtrends saw ADA hitting its lows at $0.30 in November 2022. Moreover, the altcoin breached the horizontal area at $0.35.

That presents a critical bearish development as this zone remained in place in January 2021. The crash emerged after a bearish weekly Relative Strength Index divergence, though Cardano had no pessimistic news to impact its price.

Meantime, the bearish divergence trend-line remains intact. These factors had the weekly chart technical analysis flashing possible price downtrend continuation for ADA. The alt might dip towards the next support floor at $0.15. Nevertheless, a bullish closing beyond $0.35 would cancel this bearish forecast for Cardano’s price.

ADA Price Forecast – Journey to $0.15

ADA exhibits a decisively bearish wave count. The alt’s price waves in the fifth wave of a 5-wave decline that started after the ATH. The triangle presence between May & September shows ADA in the 5th wave.

The Fibonacci levels place a possible bottom between $0.17 & $0.20, found by assigning waves 3 & 5 a 1: 1 ratio and wave four’s 2.61 external Fibonacci retracements. Thus, the zone can end ADA correction.

ADA/USDT Daily Chart

The daily chart technical indicators show ADA’s price will suffer more drops in the upcoming days. That’s because the daily 9 Exponential Moving Average sways beneath the 20 Exponential Moving Average. Also, the 24hr Relative Strength Index swayed beneath the daily Relative Strength Index Simple Moving Average line.

Moreover, Cardano can flip the surrendered $0.206 support to resistance if it fails to close beyond the level during today’s session. Also, ADA enthusiasts should assess market-wide cues to profitable decisions.

The crypto market sees red on the weekly and daily timeframes. For instance, Bitcoin lost 2.11% and 2.25% within the past day and seven days, respectively. While publishing this content, BTC hovered at $16,201. Downward tendencies may continue as bears dominate the entire marketplace.

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