Cardano shows a bullish signal, will it be enough?



Cardano (ADA) price is showing mixed signals on different time frames. Whether it bounces or breaks above the $0.30 level could determine the future price action.

The Cardano blockchain platform is a proof-of-stake platform created by Charles Hoskinson. cardano worth It has been declining since reaching an all-time high of $3.10 in August 2021. The decline reached a low of $0.29 in November 2021.

It broke the long-term $0.35 horizontal support area. The decline accelerated during November 2022, with the entire crypto market witnessing a decline.

Furthermore, the bears invalidated the bullish divergence on the weekly RSI (green line). This is another sign of continuation of the decline

If the downside momentum continues, the next closest support area will be at $0.15, which is a 50% downside from the current level.

Consequently, the weekly time frame indicates that the Cardano price forecast is bearish.

Another bearish outline has been revealed by drawing an ascending parallel channel connecting the 2017 high with the all-time high. Doing so shows that ADA price has broken through the middle of this channel (green circle).

However, it also offers a nearby support area at $0.22 which is formed by the 0.5 Fib retracement support level. This can act as a bottom for future price.

Will the price of Cardano skyrocket?

Technical analysis from the daily chart shows that in early November ADA price was rejected by the $0.43 horizontal resistance area. It has been declining ever since. It reached a maximum price of $0.44 before rejection.

While the daily RSI has generated a bullish divergence (green line), its trend line has been invalidated. As a result, it is not certain whether the divergence will lead to a bounce or not.

However, the six-hour time frame is showing a breakout from a short-term descending resistance line.

Additionally, it shows that the bullish divergence trend line (green) is still intact. While ADA price turns lower in the next 24 hours, it may validate the line as support.

Therefore, the ADA price forecast from the short term time frame is unclear.

Cardano wave count: two possibilities for the bottom

Finally, the wave count provides two possibilities for the bottom. Both suggest that ADA price is in the fifth and final wave of a long-term downward movement (white).

The first count shows that ADA price is completing the fifth wave as an ending diagonal. The sub-wave count is in black. This shows that the bottom is very close.

A more bearish count indicates that Cardano price has only completed the first part of its decline, and the downside movement will resume towards $0.15.

Therefore, whether Cardano price breaks below $0.30 or bounces will determine the future Cardano price forecast.

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