Cardano (ADA) has been falling in a corrective pattern since reaching its all-time high in September. There is no bullish reversal sign yet.
ADA has been declining since reaching an all-time high of $3.10 on September 2.
Although the price has recovered slightly, there are no clear bullish reversal signals in place. Conversely, the weekly RSI is declining and is below 50.
If the decline continues, the nearest support area will be $0.36. This is an important horizontal support level as it acted as resistance in May 2018 and then as support in November 2020.
cryptocurrency trader @ pentosh1 Tweeted an ADA chart showing a decline of 85% from all-time highs. At the current price of $0.45, the price has decreased by exactly 85%.
reduction inside the channel
The daily chart shows that ADA is declining within a descending parallel channel since the all-time high above.
Although such channels usually have corrective movements, meaning it is likely to lead to a breakout, the price was rejected by the channel’s resistance line on June 9. In turn, it has been falling ever since.
Besides, the daily RSI has broken below its ascending support line (Green Line).
If the $0.36 area fails to provide support, the next nearest support level will be $0.15, formed by the middle of the channel (red circle).
ADA breaks down
Finally, the six-hour chart shows that ADA has already broken above an ascending parallel channel. This supports the possibility that the downward movement will continue.
Apart from the double bottom support at $0.40, the most recent upward move using an external Fibonacci retracement is providing targets at $0.33 and $0.23. The former also coincides with longer term support levels, increasing its importance in the process.
For Be[in]Latest Bitcoin (BTC) Analysis of Crypto, click here