ADA is trading inside the long-term support at $0.36, thus following a descending resistance line.
Cardano (ADA) price is trading inside a major horizontal support area but is yet to show any signs of a bullish reversal. Its price has fallen below a descending resistance line since August 2021. So far, the drop has led to a low of $0.33 on Oct. 21.
The bottom was made inside the $0.36 horizontal support area. This is a crucial horizontal level as it acted as resistance in both May 2018 and February 2021. After the ADA price broke out, it started a rapid move higher leading to the all-time high of $3.10.
There are no bullish reversal signs in place yet. The weekly RSI is still dipping below a descending resistance line (green) and has not generated any bullish divergence. Furthermore, the price of ADA has yet to break out of its descending resistance line.
Currently, if ADA manages to break out of the line or instead falls below the $0.36 support area it could determine the direction of the future trend.
Bottom at $0.32?
A closer look at the daily price action shows that the ADA price broke out from a symmetrical triangle. It did so on October 2, confirming the start of a new five-wave bearish move (black).
On Oct. 23, FTX CEO Sam Bankman-Fried tweeted that the exchange plans to list ADA in the future. Currently, ADA is not listed on the exchange, but in the futures section. The price started an upward movement soon after.
However, it is possible that the movement was part of the count. If this is correct, the price of Cardano would probably be in the fourth wave. Therefore, another final downward move will follow leading to the bottom.
The closest Fib target for this bottom is at $0.33, created by the 1.27 Fib outer retracement of the triangle.
Otherwise, the next Fib support area would be at $0.23. While this would be a better fit for the breakout of the $0.36 area in the longer term, it would mean that wave five would be extremely long.
Conversely, a rally above the wave one low at $0.43 (red line) would invalidate the bearish ADA price prediction. Instead, it would indicate that a bullish reversal has started.
It is worth noting that technical analysis indicators are bearish. Similar to the weekly RSI, the daily RSI remains bearish. It has not generated any kind of bullish divergence, nor has it broken its descending resistance line (green line).
Cardano (ADA) Price Prediction for the Upcoming Years
According to CryptoGeek, Cardano will have a double win in 2023, both as one of the leading products on the market and as part of the growing market.
FXStreet states that Cardano has been trading sideways since its high of $1.48 set on February 27. The digital asset just had a significant break from a major pattern and is targeting a long-term top.
In conclusion, the future of Cardano (ADA) is promising. It is consolidating in the crypto space at the same time that the eyes of large companies and investment groups show interest in the technology they represent. Cardano (ADA) forecast is bullish for the next few years. But due to the high volatility of the market, Cardano’s prediction may vary in the coming years. Although the upcoming updates and news about Cardano give good hopes for the project.
By Audy Castaneda
