Cardano Price Prediction: Bearish divergence hinting at a 20% mudslide
- Cardano price is down 7% on the day.
- ADA could decline toward the $0.30 level, resulting in a potential 20% decline.
- Invalidation of the bearish thesis would arrive from a breach above the new year-to-date high at $0.421.
Cardano price is down 7% on the day as the 9% surge witnessed on January 15 has been almost entirely reversed.
Cardano price in jeopardy
Cardano price witnessed a significant surge of 9% on January 15, reaching a high of $0.42, but the current sell-off indicates that the bullish momentum was short-lived. While the uptrend is not yet been confirmed to be over, traders should exercise extreme caution near the current price levels.
Cardano price currently auctions at $0.39, down 7% since the opening bell. The Relative Strength Index (RSI) adds fuel to the bearish flame as the daily outlook for Cardano shows a bearish divergence with the new high at $0.42 and the previous range high at $0.34. This indicates a potential reversal for the bullish trend, with a bearish bias in the short term.
Considering these factors, Cardano could decline toward the $0.30 level, resulting in a potential 20% decline. The target zone is the origin point of the RSI's Divergence levels.
ADA/USDT 1-Day Chart
Invalidation of the bearish thesis would arrive from a breach above the new year-to-date high at $0.421. If Cardano breaks through this resistance level, the bulls could take over and push the price up to the $0.500 level, resulting in a 25% increase from Cardano's current market value.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
