Depending on the time window, the Cardano (ADA) price exhibits conflicting patterns. The direction of the price trend could change depending on whether it bounces or breaks down from the $0.30 level.
Charles Hoskinson developed the proof-of-stake Cardano blockchain platform. Since reaching an all-time high of $3.10 in August 2021, the price of Cardano has been declining. Eventually, the price fell to $0.29 in November 2021.
This led to a collapse from the horizontal long-term support level of $0.35. In November 2022, the decline picked up speed and spread throughout the cryptocurrency market.
A bullish divergence in the weekly RSI was also invalidated by the decline (green line). This is one another indicator that the downward trend will continue.
The following support level, at $0.15, or a 50% decrease from the present level, would be reached if the bearish trend persists.
The weekly time frame therefore shows that the Cardano price prediction is bearish.
By connecting the 2017 high and the all-time high with a rising parallel channel, another bearish shape may be seen. This demonstrates that the ADA price has broken down from the channel's midpoint (green circle).
The 0.5 Fib retracement support level, however, also creates a more condensed support area at $0.22. This might serve as a price bottom moving forward.
Cardano Price: Recovery a Possibility?
According to the technical analysis of the daily chart, in the start of November, the $0.43 horizontal resistance level rejected the ADA price. Since then, it has been dropping. Before the rejection, the price rose to a maximum of $0.44.
Bullish divergence has been produced by the daily RSI (green line), however its trend line appears to have been invalidated. Therefore, it is uncertain if the divergence will result in a bounce.
However, a breakout from a short-term falling resistance line can be seen on the six-hour time frame.
It also demonstrates that the green bullish divergence trend line is still in place. The ADA price fell over the following 24 hours, validating the line as support.
As a result, it is unclear how to anticipate the price of ADA using short-term time frames.
Two Possibilities for the Bottom in the Cardano Wave Count
Finally, there are two potential bottoms given by the wave count. Both indicate that the price of ADA is currently in the fifth and last wave of a protracted downward spiral (white).
According to the first count, the price of ADA appears to be ending the fifth wave as a diagonal. The number of sub-waves is in black. It hints that the bottom is just around the corner.
The more bearish figure suggests that the price of Cardano has only finished the initial leg of its decline and will continue to fall toward $0.15.
Therefore, the projection for the future price of Cardano will probably depend on whether the price drops below $0.30 or rises.