Cardano Price Prediction: ADA's final decline before the mother of all bull runs occurs

Cardano price coils within a consolidating range since the spring of 2022.
A second attempt of the $0.42 support zone could induce a 40% decline.
Invalidation of the bearish thesis is a breach above $0.59.

Cardano price could set up for the final decline before a reversal occurs. Key levels have been identified.

Cardano price is setting up for one more decline

Cardano price has been reading range bound since May of 2022. The back-and-forth price action appears to have formed a large symmetrical triangle. The Relative Strength Index confirms the triangle idea as divergences between prices correlate with each swing high and swing low.

Cardano price currently auctions at $0.46. A Fibonacci Retracement tool surrounding the August through high at $0.59 and the most recent swing low at $0.42 shows the current downtrend catalyzed by the 61.8% Fibonacci level. Based on Elliott Wave and Fibonacci theory, the final E wave of the prospective triangle could be over.

ADA USDT

Thus, A reattempt of the $0.42 should not be taken lightly. If the triangle thesis is correct, an impulsive wave targeting $0.27 could occur in the coming weeks. Such a move would result in a 40% decline from ADA’s current market value. A double backtest towards the 61.8% fib level at $0.52 is still possible. Therefore under Elliott Wave Theory, invalidation of the bearish thesis should remain Wave C at $0.59.

Investors should remember that if the triangle thesis is validated, an explosive five-wave impulse should target the mid $0.20 level. Once the target is reached, investors could begin looking for a knife catch opportunity, as triangles are usually the last consolidation before a trend change occurs. A rally towards the all-time highs would result in a 500% increase from the current Cardano price.

In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram