The price of ADA has been falling since December 14th, setting a declining high on December 29th. Cardano recently dropped below an important horizontal support area and is testing it as resistance.
Cardano (ADA) declines after multiple pullbacks
The weekly timeframe shows that the price of ADA has been rising rapidly since October 2023. However, despite numerous attempts, it has failed to make a bullish breakout of the critical horizontal resistance area present on the chart since May 2022.
They cryptocurrency has formed six consecutive long top wicks, which are considered signs of selling pressure. In January 2024, a sharp decline in prices began.
The token is now approaching the level of the previous bullish breakout, meanwhile, the weekly relative strength index (RSI) is giving a bearish signal. The indicator has fallen below 70 and is declining. All these are signs of a bearish trend.
Where will ADA go: to $0.50 or to $0.40
The daily timeframe promises the coin a bearish trend for ADA. This is indicated by price dynamics, RSI signals and Elliott wave analysis .
The most likely wave scenario suggests that Cardano is in wave C of the ABC correction structure. The ratio of waves A:C as 1:1 gives us a low of $0.41, coinciding with the 0.618 Fibonacci retracement level.
Price action shows ADA testing the $0.50 area as resistance following its bearish breakout. This is a normal retest after such breakthroughs. Finally, the daily RSI is below 50 and declining. Both of these signs indicate a bearish trend.
If the downward movement continues, the coin could fall 16% to the 0.618 Fib retracement support level at $0.41. Despite this bearish outlook, Cardano’s return to $0.50 could trigger a nearly 30% rise in the asset to the next resistance at $0.63.
About Cardano (ADA)
Cardano is one of the most popular cryptocurrencies and ranks #8 in terms of market capitalization, which is $17 Billion. The project is a decentralized public blockchain, the main goal of which is to protect user privacy, as well as easy modernization so that the system can quickly develop. Cardano is a multi-layer protocol; the settlement layer is responsible for computational functions, and the control layer runs smart contracts and enforces network requirements.
Features of the Cardano cryptocurrency
Like Ethereum, Cardano is being developed as a platform on which smart contracts and decentralized applications can be run. The project was launched in 2015 and opened to the public in 2017. It is based on the Ouroboros Proof-of-Stake algorithm. The Cardano platform runs a decentralized, open-source cryptocurrency (ADA) that can be used to send and receive digital funds.
