Cardano Market Outlook and 5000 USDT Giveaway by ProEX

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Last Updated on October 20, 2022 by Bitfinsider

ADA breakdown and wave count suggests downward movement will continue

Cardano (ADA) has been falling since reaching an all-time high price of $3.10 in August 2021. The downward movement has followed a descending resistance line and led to a low of $0.40 on May 12, 2022.

Since then, the price has stopped its decrease and has actually bounced slightly. It is currently hovering just above $0.42. 

The closest support area is at $0.36. This is an important horizontal level that previously acted as resistance (red icons) in May 2018 and then in Jan 2021 (red icons).

The breakout from the latter was the catalyst for the beginning of the upward movement towards a new all-time high.

Therefore, despite a massive decrease since the all-time high, the price has yet to reach a significant horizontal support level. Additionally, the RSI has yet to break out from its bearish divergence trend line (green). 

As a result of these readings, the continuation of the downward movement towards the $0.36 area seems to be the most likely scenario.

Since reaching the aforementioned bottom on May 12, as seen on the daily chart, ADA’s price action has been contained within a symmetrical triangle. Even though the symmetrical triangle is a pattern that is regarded to be neutral, the likelihood of a breakdown from it is extremely high given that the triangle is occurring after a movement in the opposite direction.

On October 2, the price struck a low of $0.41, falling down below the low of the D wave in the process (red line). This proved that the bearish wave count was correct, which stated that the price had successfully exited the symmetrical triangle at this point. In addition to that, the preceding RSI collapse below 50 points lends support to this scenario (red icon).

The extension of the height of the triangle by a factor of 1.61 predicts that the price will approach $0.23 in the near future.

In terms of the wave count over a more extended period of time, it is most likely that the triangle represented wave four of a five wave downward descent (black). As a result, we are now in the fifth wave of price action.

When the highs of waves two and four are connected using a parallel channel, another way to get to the low of $0.22 is to use this method. Because of this convergence of factors, it is expected that the price will continue to decline until it reaches these levels.

Conclusion

Price movement, readings of technical indicators, and wave counts have all pointed to a downward trend for ADA, and all three are consistent with a bearish outlook. As a result of the convergence of Fibonacci levels and channeling techniques, a target of $0.25 seems likely.

Even though this is the most likely outcome, it would be rendered meaningless if the price went up by more than $0.52.

ProEX Double the luck, 5000 USDT prize pool is waiting for you!

ProEX is more than just an exchange. It’s a crypto community that brings together people with diverse crypto and blockchain interests.

Anyone in the world can join the ProEX community for free. You can join the community whether you are a developer, HODLer, or ProEX user. Indeed, the more diverse talents that join the community, the stronger it becomes. You can find out more about their communities here.

In response to the support of ProEX users who have been following ProEX since the beginning, ProEX will hold an event “Double the luck, 5000 USDT prize pool is waiting for you!”. During the event, join the Discord group to participate in the Periodic Giveaway Event, and then you can get a double chance by taking a screenshot and giving the proof to ProEX.

During the event, all users on ProEX will have a chance to get rewards by completing the following 4 steps : 

  1. Invite friends to register ProEX with your invitation code
  2. At least two people join Discord group and get ProK identity 
  3. Participate in weekly raffles on the #Giveaway channel
  4. Screenshot of the page where you successfully participated in the lucky draw and submitted to ProEX: http://hk.mikecrm.com/gywWhYs

By completing the above steps, in addition to the Giveaway in the Discord group, you are also eligible to participate in sharing 5,000 USDT prize pool.

Event Duration: (UTC+8) 10/08 00:00 ~ 11/04 23:59


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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