Why the recent Cardano price reversal may have been the final turning point

Cardano price may have established the final leg of the larger symmetrical triangle. Key levels have been identified. 

Cardano price is getting ready

Cardano price could set up one more monsoon-style decline in the coming days. Throughout the summer, the smart contract token has been range bound, consolidating in what appears to be a symmetrical triangle. The Relative Strength Index supports the symmetrical triangle thesis.  

There are subtle divergences between each swing, high and low, within the entire formation. Additionally, the most recent swing high took place at the 61.8% retracement level (based on the previous swing high to swing low) and was accompanied by a bearish divergence. Based on these signals, Elliott Wave theory suggests the final E wave of the triangle may be complete.

ADA USDT 8-Hour Chart

Cardano price currently auctions at $0.469 as the bears have recently breached both the 8- and 21-day simple moving averages. If the technicals are correct, Cardano's price may already be towards a 40% decline targeting $0.25.

Invalidation of the early entry bearish thesis is a breach above $0.52. If the bulls can hurdle this level, they may be able to rally as high as Fib levels near the $0.64 level. Said price action would result in a 20% increase from the current Cardano price.

In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team