Cardano Sellers Are Dominating
The weekly timeframe reveals that ADA’s price has been rapidly increasing since September 2023. The growth reached its peak in December with a new annual high of $0.68.
However, instead of sustaining the rally, the price formed multiple long top wicks (red icons) indicating selling pressure. Consequently, the token experienced a sharp decline at the beginning of 2024.
Source: TradingView
The Weekly Relative Strength Index (RSI) is providing bearish signals, falling below 70 and trending downwards, approaching the 50 barrier.
ADA forecast: When will the price reach its lowest point?
Taking a closer look at the daily timeframe, it becomes apparent that Cardano is currently in a bearish trend.
According to analyst Chris O, who employs the Elliot Wave Theory, ADA is currently in the initial sell-off phase of the current bull cycle.
This aligns with the wave chart, which illustrates that the price is currently in wave C of the ABC correction structure (black).
By applying a 1:1 ratio to waves A:C, we can predict a low point at $0.41, which coincides with the 0.618 Fibonacci retracement level (white color). For this prediction to materialize, ADA must decrease by 13% from its current price. The falling daily RSI further supports this scenario.
Source: TradingView
Despite this bearish outlook, a strong rebound from the 0.5 Fib retracement support level and a recovery above the $0.50 area could trigger a 32% surge in Cardano’s price, reaching immediate resistance at $0.62.
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