Cardano price is still on pace to retest $0.40, but bears shouldn't get too excited
- Cardano price is coiling in a sideways manner.
- Cardanol price Relative Strength Index hints at bearish control.
- Invalidation of the bearish thesis is a breach at $0.725.
Cardano price is preparing for a retest of $0.40 before a massive countertrend rally occurs.
Cardano price needs one more wave down
Cardano price is on professional traders' urgent watchlist as the digital asset could enter a mid-term bottom in the $0.45 zone before rallying upwards towards $0.60. ADA price, like several cryptos, has been in a steep bear rally, which demands the need for balance and proportion.
Cardano price provides bearish confluence using the Relative Strength Index, as several bearish divergences and negative reversal signals are taking place. Traders should expect a fall to $0.45 and possibly $0.40 but should be careful of asking for any more. A sharp rally will occur after the final bearish impulse wave is established if the technicals are correct.
ADA/USDT 4-Hour Chart
Invalidation of the current bear trend is a breach at $0.725. If the bulls can conquer this level, then the $1.00 level could be back on the table, resulting in a 100% increase from the current Cardano price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
