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Cardano Price Prediction: One more drop before the bull rally begins

  • Cardano price has printed a large bearish engulfing candle on the 3-day Chart.
  • Fibonacci projection tool coincides with lower targets.
  • Invalidation of the bearish downtrend is a touch at $0.9150.

Cardano price is wiping out all liquidity on the current sell-off. The next target is $0.54 and then $0.44.

Cardano price could fall once more

Cardano price has been enduring quite a drastic sell-off. It appears market makers are looking to liquidate leveraged traders as the price is on a severely steep decline. Analyzing the downtrend, it seems the bears could have one more drop in the cards before prices finally reverse.

Cardano price is falling into levels it has not visited since February 2021. The bears have printed a shockingly large candle on the 3-day Chart, which will need extreme bullish power to reverse. A candle of this magnitude warrants the need for a bullish hammer or bullish engulfing candle with significant volume to combat the bearish impact. A Fibonacci projection indicator surrounding the initial drop in April into the first pullback also forecasts the 200% and 261.8% levels at $0.54 and $0.44 price levels, which could be the final capitulation low.

tm/ada/5.10.22

ADA/USDT 3-Day Chart

Invalidation of the bearish thesis is a breach at $0.9150. If the bulls establish price action back into this level, the downtrend impulse will be void. The bulls could then re-route towards $1.20, resulting in a 100% increase from the current Cardano price.

Author

Tony M.

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.

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