Crypto News– Cardano’s (ADA token price) price has seen a notable surge in recent weeks, but signs are emerging that a correction phase might be underway.
Cardano Price Review: Could ADA Experience a Correction Soon?
The ADA token price has initiated a correction after its recent upward momentum, showing a downward trend over the last three days. This raises the possibility of a further correction, potentially reaching the 0.382 Fibonacci support level at around $0.344.
Should this support level be breached, the subsequent significant Fibonacci support rests at the Golden Ratio, approximately at $0.3.
Despite the ongoing correction, it’s essential to highlight the presence of a golden crossover on the daily chart, indicating an overall bullish trend in the short to medium term.
However, caution is warranted as other indicators paint a nuanced picture. The MACD histogram has been consistently trending lower for three days, and the bearish crossover of the MACD lines implies a prevailing short-term bearish sentiment. The RSI, residing in the neutral zone, currently provides neither bullish nor bearish signals.
Anticipating Cardano’s Price Movement: Is a 20% Decline on the Horizon?
If Cardano undergoes a correction and retraces solely to the 0.382 Fibonacci support level, roughly at $0.344, the potential downside would be around 8%. However, a correction to the golden ratio at around $0.3 could result in a more significant decline, potentially reaching 19%. This implies that Cardano might experience a correction of approximately 20% without negating its overall upward trajectory. As long as Cardano maintains its position above the golden ratio support, approximately at $0.3, the bullish trend remains intact.
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