Cardano price eyes a retest of $0.435 as ADA bears take control

Cardano price has been repeating a fractal pattern, which has taken the form of a short rally up to tap liquidity, for several weeks now, however, due to exhaustion and deteriorating market conditions, the so-called “Ethereum-killer” is now taking a u-turn and not stopping until it encounters a stable support floor.

Cardano price on a lower time frame

Cardano price swept the September 6 swing high at $0.512 and produced a higher high at $0.524. However, it failed to sustain its footing above the $0.505 support level, which flipped it into a resistance level as ADA crashed by 11%.

A minor pullback provided respite for the bears, but the sell-off seems to continue after a breakdown of the $0.472 support level. A continuation of this descent could reverse after the liquidity run below the September 7 swing low at $0.451 

But if Bitcoin bears ruin the party, ADA could slide a lot lower to retest the $0.435 support level. Between $0.435 to $0.425 is where investors can expect a soft landing for Cardano price and the first stirrings of a reversal. 

ADA could drop 7.5% in total, however, before a meaningful reversal occurs. 

ADA/USDT 4-hour chart

On the other hand, if Cardano price fails to break lower and climbs higher instead to produce a higher high above $0.505, it will invalidate the bearish outlook for ADA. In this situation, Cardano price could retest the $0.550 hurdle, followed by a potential advance to $0.582.

Note: 

The video attached below talks about Bitcoin price and its potential outlook, which could influence Cardano price.