Cardano (ADA) Price Forecast: More Declines Ahead in February?

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In Brief

  • Cardano (ADA) is undergoing a corrective phase with a potential 12-20% drop, targeting the 200-day EMA support near $0.425.
  • Despite bearish indicators, Cardano’s ADA has reached the Golden Ratio support level at approximately $0.48, which could lead to a bullish bounce.
  • ADA experienced a significant downturn in January, dropping by approximately 30%, yet bullish MACD indicators suggest underlying positive momentum.

Cardano (ADA) is currently experiencing a significant corrective phase, and it’s unclear whether this movement has reached its conclusion.

The future direction of ADA’s price – whether it will continue to decline or rebound bullishly to resume its uptrend, depends on a variety of factors. These include market sentiment, broader cryptocurrency market trends, and developments specific to the Cardano ecosystem.

Cardano Price Faces Potential 12-20% Drop

Cardano has been undergoing a corrective movement for several weeks, characterized by a parallel downward channel. Despite a recent upswing last week, ADA was unable to break through the Golden Ratio resistance at approximately $0.555, indicating that the corrective trend persists.

This ongoing correction could potentially lead to a further decline in ADA’s price, ranging from 12 to 20%, targeting the 200-day Exponential Moving Average (EMA) support near $0.425. Alternatively, the next significant Fibonacci support level is around $0.39.

The daily chart presents a mixed outlook with the presence of a golden crossover in the EMAs, suggesting a bullish trend in the short to medium term. In contrast, the Moving Average Convergence Divergence (MACD) lines are nearing a bearish crossover, with the MACD histogram showing a bearish trend for several days.

Cardano (ADA) Price Forecast: More Declines Ahead in February?
Cardano (ADA) Price Chart. Source: Tradingview

The Relative Strength Index (RSI) remains neutral, not signaling a clear direction. However, if the downward movement persists, the RSI may soon enter oversold territory, potentially indicating an upcoming reversal or stabilization in ADA’s price.

Cardano Price Supported by Golden Ratio Level

In the 4-hour (4H) chart for ADA, the technical indicators are signaling bearishness. A death cross has occurred among the Exponential Moving Averages (EMAs), where a shorter-term EMA has crossed below a longer-term EMA, solidifying the short-term bearish trend.

Additionally, the MACD histogram is trending downwards, and the MACD lines are in a bearish crossover, further confirming the negative sentiment. The RSI is also approaching oversold territory, which could indicate a potential for a reversal or pause in the downward trend.

Cardano (ADA) Price Forecast: More Declines Ahead in February?
Cardano (ADA) Price Chart. Source: Tradingview

Despite these bearish indicators, Cardano has reached the Golden Ratio support level at approximately $0.48. This crucial support could serve as a pivot point for ADA, potentially leading to a bullish bounce back towards the Golden Ratio resistance level at around $0.555.

Cardano Price Bounces Off 200-Week EMA

Two weeks ago, ADA found support at the 200-week EMA near $0.448, but has since resumed a downward trend.

In the weekly chart, the MACD lines are nearing a bearish crossover, and the MACD histogram indicates a declining trend, underscoring the bearish sentiment.

Cardano (ADA) Price Forecast: More Declines Ahead in February?
Cardano (ADA) Price Chart. Source: Tradingview

Despite this, the presence of a death cross in the EMAs confirms a bearish trend in the medium term. However, the bullish momentum that started at the beginning of the year is still considered active as long as ADA maintains above the golden ratio support at approximately $0.39.

Additionally, the 50-week EMA is providing further support around $0.418, potentially offering a buffer against further declines and a base for potential rebounds.

ADA Price Suffers 30% Decline Over Past Month

Cardano experienced a significant downturn in January, with the price dropping by approximately 30%. Despite this bearish trend, the outlook for ADA this month continues to be bearish.

However, on the monthly chart, the MACD indicators still present a bullish perspective. The MACD histogram is trending upwards, indicating bullish momentum, and the MACD lines are in a bullish crossover position. Meanwhile, the RSI remains in a neutral state, not signaling overbought or oversold conditions.

Cardano (ADA) Price Forecast: More Declines Ahead in February?
Cardano (ADA) Price Chart. Source: Tradingview

This juxtaposition of a recent bearish trend with bullish MACD indicators on the monthly chart suggests a complex market sentiment for ADA, where underlying bullish signals persist despite short-term bearish movements.

ADA Reaches Golden Ratio Against Bitcoin

In its trading against Bitcoin (BTC), ADA has returned to the golden ratio support level, around 0.000011 BTC. The potential for a bullish bounce from this level within the current month remains uncertain.

Should Cardano break below this support level in a bearish manner, the next significant support range for ADA is expected to be between approximately 0.0000083 BTC and 0.0000087 BTC.

Cardano (ADA) Price Forecast: More Declines Ahead in February?
Cardano (ADA) Price Chart. Source: Tradingview

On a more positive note, the MACD indicators on the monthly chart are showing bullish signs. The MACD histogram is trending upwards, indicating increasing bullish momentum, and the MACD lines are nearing a bullish crossover.

This bullish development in the MACD suggests underlying positive momentum for ADA against BTC, despite the immediate pressure at the golden ratio support level.

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Cardano (ADA) Price Forecast: More Declines Ahead in February?

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This article is sourced from the internet: Cardano (ADA) Price Forecast: More Declines Ahead in February?

Related: Cardano Price Prediction: Is a 30% Decline in ADA’s Value Looming?

In Brief Cardano’s (ADA) future price trajectory relies on market sentiment, crypto trends, and developments within its ecosystem. ADA’s price could drop to the 0.382 Fib support level at $0.5 or the golden ratio support at $0.39, indicating a potential downside of 10% or 31%. Despite bearish signs, the Relative Strength Index (RSI) remains neutral, suggesting a complex market scenario for Cardano. Cardano (ADA) is currently experiencing a corrective phase. ADA is currently struggling to surpass the 0.382 Fibonacci (Fib) resistance level and is facing a bearish rejection. The future trajectory of ADA’s price, whether it will continue to fall or rebound soon, depends on several key factors. These include market sentiment, cryptocurrency market trends, and developments within the Cardano ecosystem. Investors are closely monitoring these factors for indications of…

 

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