Cardano (ADA) has been depreciating since July 24 and it is unclear at this stage whether the bearish correction has ended, although a rebound is expected in the short term.
ADA settled at support
In March-May, Cardano was one of the growth leaders. However, having touched the top of $ 0.154 on July 24, the quotes rushed down and continue to decline to this day. along with the rest of digital assets, ADA accelerated the downward movement on September 1.
As a result, the quotes approached the long-term support located at $0.09, which in June-July last year acted as a resistance.
Long-term technical indicators paint a bearish picture. The RSI and Stochastic RSI are both declining, with the latter forming a bearish crossover while the MACD has already moved into negative territory.
At the time of writing the analysis, the price was in the support area of $0.09, where the 200-day moving average also passes.
Technical indicators paint a neutral picture with a slight bullish bias. MACD started to rise and the RSI stochastic formed a bullish crossover. However, the stochastic slope is very smooth, and the RSI itself is moving south.
This speaks in favor of a potential bounce, but in the longer term, the picture remains negative.
The ADA appears to have completed the wave structure (highlighted in black on the chart) with an extended fifth wave. If so, the altcoin has either started an A-B-C retracement or started a bearish impulsive wave.
The shorter-term trend suggests that the price is likely to start a correction, as three waves were formed instead of five during the decline. ADA is currently in the c wave, which could end at $0.078 if the A: C ratio is 1: 1.
CryptoNTez, a cryptocurrency trader, shared the ADA chart on Twitter, where he sees the potential for the pair to continue falling to the 800 satoshi mark, followed by a fall to 690 and 630 satoshi.
At the time of writing, the altcoin is below the 915 satoshi level, where the 200-day moving average is also located.
The direction of further movement of the pair depends on how successful the testing of this zone is. If the coin fails to recapture this level, the next target may be to support 800 satoshi and then 690 satoshi.
Technical indicators are in favor of growth. The RSI and MACD are giving bullish divergence signals, while the stochastic RSI has formed a bullish crossover.
If the ADA is able to win back the resistance and break the line of the descending resistance, the pair could aim at the 1300 Satoshi mark in the future.