Cardano (ADA) Price Rises 8% This Weekend, Ascending Support Boosts Recovery

Key Takeaways

• ADA faces resistance at $0.40, impacting its upward momentum.
• Fibonacci analysis projects a potential drop to $0.30.
• A breakout will signal ADA’s next primary trend direction.

Cardano (ADA) has been subject to significant price fluctuations, with sharp declines and brief rebounds shaping its market trajectory.

Despite attempts to recover, the price remains in a downtrend with critical resistance and support levels in focus.

This analysis provides insight into future movements based on wave structures and key technical indicators.

Cardano Price Analysis

Cardano has experienced significant price volatility, climbing to nearly $0.80 on March 14 before falling to a low of $0.32 on July 5.

Following that dip, the price rebounded 42%, peaking at $0.45 on July 17, only to drop again to a new low of $0.27 on Aug. 5.

After a brief recovery to $0.40 on August 24, ADA faced another decline, falling to $0.30 on Sept. 6. An ascending support level formed, with the price spiking to a slightly higher high of $0.42 on Sept. 27.

Still, another reversion to its ascending level was seen on Oct. 10, when its latest bounce brought it up by another 8% to $0.36, where it is currently being traded. 

Although we saw an ascending structure formed since Aug. 5, a clear five-wave pattern still needed to be developed, which would have indicated a starting uptrend.

ADA is still kept below $0.40, which is significant horizontal resistance. 

The breakout direction above $0.40 or below the ascending trendline will further indicate its next primary trend. 

ADA Price Prediction

Analyzing the wave structure on the hourly chart, the uptrend from Aug. 5 to 24 appears to be a three-wave movement, which may suggest an ABC corrective wave after an impulsive move brought ADA to its yearly low on 5.

Based on this outlook, the downtrend that started after the August 24 peak could represent the second correction, while its following three-wave uptrend, the ending one, has a higher degree of WXY. 

Using the Fibonacci extension tool, a price target of $0.30 is projected, assuming the downtrend mirrors the length of the previous decline from Sept. 27 to Oct. 3

However, if ADA continues to hold above the horizontal support at $0.32, there is still a slim possibility of a bounce, potentially driving the price back to at least $0.40

In summary, ADA remains in a major downtrend from its March high of $0.78; no clear signs of reversal have emerged.

Further downside is anticipated in the short term, and only after a breakout above the descending and horizontal resistance at $0.40 will there be strong confirmation of a potential price rally.