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Cardano (ADA) Price Collapses From Yearlong Support. Is a Further 50% Drop Incoming?

2 mins
21 November 2022, 10:00 GMT+0000
Updated by Geraint Price
22 November 2022, 16:13 GMT+0000
In Brief
  • Cardano has broken down from the $0.35 support area.
  • The weekly and daily RSI have broken their bullish divergence trend lines.
  • There is long-term support at $0.15.
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The Cardano (ADA) price has broken down from a long-term support level, signaling the final portion of its capitulation.

Similar to the rest of the crypto market, the Cardano (ADA) price had fallen since Aug. 2021, when it reached a maximum price of $3.10. The decrease led to a low of $0.30 in Nov. 2022.

Additionally, price broke down from the $0.35 horizontal area. This is a crucial bearish development since the area had been in place since Jan. 2021. 

The entire drop was preceded by a bearish divergence in the weekly RSI (black line), though there was no negative Cardano news to affect the price. The bearish divergence trend line is still intact. 

On the other hand, the bullish divergence trend line (green) is now broken, further supporting the bearish ADA price forecast. 

Due to these factors, the weekly time frame technical analysis suggests that the continuation of the Cardano price decrease is expected. This could lead to a future price of $0.15, reaching the next support area. 

Conversely, a bullish close above $0.35 would invalidate this bearish Cardano price prediction.

Cardano (ADA) weekly price
ADA/USDT Chart By TradingView

Cardano Price Prediction: Road to $0.15

The wave count for the ADA token is decisively bearish. The price of ADA is in wave five of a five-wave decrease which began after the all-time high. 

The presence of the triangle between May and Sept. suggests that Cardano is now in wave five. The sub-wave count is in black. 

Using Fib levels, the most likely area for a bottom is between $0.17 and $0.20. The target is found by giving waves three and five a 1:1 ratio (white) and the 2.61 external Fib retracement of wave four (black). 

So, the area will probably mark the end of the Cardano correction. 

Cardano (ADA) Price Count
ADA/USDT Chart By TradingView

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.