What Will Happen To The Price Of Cardano (ADA) As FTX CEO Signals Upcoming

Cardano (ADA) price is trading inside an important horizontal support area, but no bullish reversal is showing signs so far.

Cardano price has fallen below a descending resistance line since August 2021. So far, the decline has led to a low of $0.33 on October 21.

A low was formed inside the $0.36 horizontal support area. This is an important horizontal level as it has acted as resistance in both May 2018 and February 2021. After ADA price broke down, it started a sharp upward movement to reach an all-time high of $3.10.

No bullish reversal signs so far. The weekly RSI is still declining below a descending resistance line (green) and has not generated any bullish divergence. Furthermore, ADA price is yet to break out of its descending resistance line.

Currently, whether ADA manages to break out of the line or instead breaks below the $0.36 support area can determine the direction of the future trend.

ADA Weekly
ADA/USDT chart by TradingView

ADA price may drop below $0.32

A closer look at the daily price action shows that ADA price broke out of a symmetrical triangle. It did so on October 2, confirming the start of a new five-wave downward movement (Black).

On October 23, the CEO of FTX, Sam Banksman-Fried Tweeted that the exchange plans Listing ADA in future. Currently, ADA is not listed on the spot exchange, but is listed in futures. The price started an upward movement shortly afterwards.

However, it is possible that this move was part of the count. If the calculations are correct, Cardano price is currently pulling back in a potential wave four. Therefore, another final downward movement will occur later which will lead to the downside.

The nearest Fibonacci target for this bottom is $0.33, formed by the 1.27 external Fibonacci retracement level of the triangle.

If not, the next Fibonacci support area will be at $0.23. While it will improve with a breakout from the longer term $0.36 area, it would mean that Wave Five will be extremely extended.

cardano price wave count
ADA/USDT chart by TradingView

Conversely, a rise above the wave of $0.43 (red line) would invalidate the bearish ADA price prediction. Instead, it would signal that a bullish reversal has begun.

It is worth noting that technical analysis indicators are bearish. Similar to the weekly RSI, the daily RSI is still bearish. It has not generated any bullish divergence, nor has it broken above its descending resistance line (green line).

For the latest BeInCrypto Bitcoin (BTC) and crypto market analysis, click here

Disclaimer: BeInCrypto strives to provide accurate and up-to-date information, but will not be responsible for any missing facts or incorrect information. You comply and understand that you should use this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do the research and make your own financial decisions.


All information contained on our website is published in good faith and for general information purposes only. Any action taken by readers on information found on our website is strictly at their own risk.

Source link

Leave a Comment