The cryptocurrency markets are experiencing increased volatility once again, which is something investors have been waiting for weeks. This increase in volatility is also bringing opportunities for altcoins to make moves. While day traders who engage in short selling have made significant profits, there are now signs of potential reversals in prices.
Cardano (ADA) Coin
The price of Cardano (ADA) fell from an ascending support line in August. The price declined towards the lowest levels of the year but bounced back, confirming the $0.25 support level. Despite the ongoing rebound, readings from the weekly and daily time frames indicate a downward trend and an increased risk of further decline. In particular, the hesitation of the BTC price at $26,000 has raised valid concerns among altcoin investors.
However, readings from the weekly chart present a different picture. The weekly time frame technical analysis shows that ADA broke free from a long-term descending resistance line earlier this year. This line had remained intact since the all-time high. Therefore, the break of this line was a sign that the correction had ended and ADA was beginning to reverse into a new bullish trend. However, the upward move did not materialize as expected. Instead, the price was rejected by the horizontal resistance area at $0.45 in April and has been declining since then.
ADA Coin Price Prediction
Price predictions from the weekly chart suggest that the price could reach the $0.45 region with a 70% increase. On the other hand, a break below the $0.25 area could lead to a 40% decrease, bringing the price down to the $0.15 range.
The analysis of the daily time frame also provides a bearish perspective. This is due to the price action and the application of Elliott Wave principle. Wave counting indicates a completed A-B-C structure since the lowest levels in June. As the correction is upward, it implies that the trend is likely to be downward. This scenario is reinforced by ADA breaking below an ascending support line at the beginning of August.
In conclusion, the $0.25 level is the most critical area in the short term. If we see closures below this level, there could be a 40% decline. On the upside, the targets of $0.34 and $0.45 remain relevant.
