Cardano (ADA) is currently trading below the crucial $1 mark and is down by more than 16 percent in the last seven days. Yesterday’s price movement created some uncertainty in the market. While a rebound was seen at the level of $0.93, it wasn’t strong enough for a major V-shaped rally. The market could see another low, in line with Bitcoin’s current movement. Today, ADA is showing further downside, although the previous day’s low has yet to be broken.
Potential for a Reversal
The next low may potentially be the final one, but without a break in resistance, confirming that a low has been reached is difficult. Currently, the price seems to be experiencing a corrective bounce, possibly the fifth wave down. If ADA breaks below $0.83, this would hint at a continued larger fourth wave.
Bullish Divergence Possibility
There is potential for bullish divergence if ADA reaches oversold conditions on the 4-hour chart. If a new low forms but the RSI remains above 20.8-20.9, it could signal a bullish divergence and set the stage for a reversal. However, this is not guaranteed, and the market will need to show specific price action to confirm this.
Key Price Levels to Watch
A break above the $1 level could signal the end of the downtrend and the start of a new wave. If ADA moves past $1.67, it would indicate that a significant low has been formed, whether it happens now or after another low.
Overall Market Sentiment
In the broader altcoin market, ADA is following Bitcoin’s movement, with altcoins showing heightened volatility. Despite Bitcoin being down around 1%, ADA is still holding above critical support levels at $0.83, which is important for the current setup. Additionally, holding above $0.64 is crucial for maintaining the overall uptrend that began in November.