Cardano (ADA) Price Is in Critical Condition and at Risk of Collapse Soon

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Cardano (ADA) price is trading slightly below a long-term horizontal support zone. A sharp drop below could catalyze a decline to $0.16.

Cardan (ADA) price has been declining since reaching a maximum price of $3.10 in August 2021. The downward movement led to a minimum price of $0.31 in November 2022. Despite this low, the price of Cardano is trading still near the $0.35 long-term horizontal support zone.

While there was no negative news from Cardano to affect the price, the decline was preceded by a bearish divergence from the weekly RSI (black line). The divergence trendline is still intact.

However, the weekly RSI has also generated bullish divergence since early May. The trendline of this divergence is also still intact (green line).

Therefore, a convergence point is looming in which the RSI must break one of the trend lines. A breakdown of the bullish divergence trendline would give a bearish Cardano price prediction. Conversely, a breakout of the bearish divergence trendline would be bullish.

The former would likely result in a decline to $0.15, while the latter an increase to $0.58.

Cardano Price Prediction: Wave Count Favors Breakdown

The number of technical analysis waves is firmly bearish. JADA price started a five-wave downward move from the all-time high. The most defining feature of this decline is the triangle that developed between May and September.

If correct, the ensuing breakdown is part of the fifth and final wave. The number of subwaves is in black.

Giving waves three and five a ratio of 1:1 (white) would lead to a low Cardano price of $0.17. Additionally, the 2.61 outer Fib retracement of wave four at $0.20 (black). Therefore, a bottom between $0.17 and $0.20 seems likely. This is supported by the movement over the past 24 hours.

Conversely, a rise above the $0.44 subwave two high (red line) would invalidate this bearish Cardano price prediction. Since this would likely cause the weekly RSI to break, it could catalyze a future upward price toward $0.58.

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