The Cardano (ADA) price has broken down from a long-term support level, signaling the final portion of its capitulation.

Similar to the rest of the crypto market, the Cardano (ADA) price had fallen since Aug. 2021, when it reached a maximum price of $3.10. The decrease led to a low of $0.30 in Nov. 2022.

Additionally, it broke down from the $0.35 horizontal area. This is a crucial bearish development since the area had been in place since Jan. 2021. 

The entire drop was preceded by a bearish divergence in the weekly RSI (black line), though there was no negative Cardano news to affect the price. The bearish divergence trend line is still intact. 

On the other hand, the bullish divergence trend line (green) is now broken, further supporting the bearish Cardano price forecast. 

Due to these factors, the weekly time frame technical analysis suggests that the continuation of the Cardano price decrease is expected. This could lead to a future price of $0.15, reaching the next support area. 

Conversely, a bullish close above $0.35 would invalidate this bearish Cardano price prediction.

The wave count for the ADA token is decisively bearish. The price of ADA is in wave five of a five-wave decrease which began after the all-time high. 

The presence of the triangle between May and Sept. suggests that Cardano is now in wave five. The sub-wave count is in black. 

Using Fib levels, the most likely area for a bottom is between $0.17 and $0.20. The target is found by giving waves three and five a 1:1 ratio (white) and the 2.61 external Fib retracement of wave four (black). 

So, the area will probably mark the end of the Cardano correction. 

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer: BeInCrypto strives to provide accurate and up-to-date news and information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

The post Cardano (ADA) Price Collapses From Yearlong Support. Is a Further 50% Drop Incoming? appeared first on BeInCrypto.

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