Cardano (ADA) has been struggling to recover from a prolonged downtrend.
Cardano struggles to recover
Despite attempts to rebound, the price remains trapped below key resistance levels. This analysis examines Cardano's recent price movements and potential future directions based on technical indicators and wave structures.
Cardano has experienced significant price fluctuations since its March 14th high of $0.80. The price has repeatedly declined, finding temporary support at various levels.
While Cardano has shown signs of resilience, it has yet to break out of the downtrend. The price remains below the crucial $0.40 resistance level, indicating a potential continuation of the downward trend.
An analysis of the hourly chart suggests a possible three-wave corrective pattern in the recent uptrend from August 5th to 24th. If this pattern holds, a further decline may be expected.
Attention turns to support levels
However, there is a slim possibility of a short-term rebound if Cardano can maintain support above $0.32. A breakout above the $0.40 resistance level would be a strong signal of a potential price rally.
In conclusion, Cardano's short-term outlook remains bearish. A sustained break above the $0.40 resistance level is necessary to confirm a reversal and initiate a potential uptrend. Until then, further downside is likely.
