Cardano (ADA) price has been moving upward since Oct. 21, gaining 22% in market value. Both the wave count and the RSI suggest that the correction is complete, and ADA could enter a new uptrend.
The technical analysis from the weekly chart shows that ADA price has been falling since reaching an all-time high price of $3.10 in Aug. 2021. The crypto bear market has led to a low of $0.33 in Oct. 2022 for Cardano price.
The low and ensuing bounce (green icon) validated the $0.36 horizontal area as support. This is a crucial area that previously acted as resistance in May 2018 and Jan. 2021. After the ADA price broke out, it increased rapidly toward an all-time high.
Additionally, the weekly RSI is exceptionally bullish. The indicator has generated bullish divergence (green) and is breaking out from its bearish trendline (black). The breakout would validate the divergence and indicate that an upward movement is likely.
If an upward ADA price movement follows, the closest resistance would be at $0.58.
Cardano (ADA) Price Confirms Bottom
A closer look at the Cardano price action from the daily timeframe shows that the previous decrease began on Sep. 10, after ADA price completed the wave count for its long-term bearish triangle (white).
Afterward, it seems to have completed a five-wave decrease (black), which culminated with the aforementioned $0.33 low.
The ensuing increase suggests that the correction is complete for two reasons:
The $0.44 high on Oct. 29 was above the breakdown level (red circle).
The daily RSI has broken out from its bearish trendline (green) and moved above 50.
As a result, both the wave count and RSI support the possibility that the price of Cardano has reached a bottom.
Alternatively, a fall below $0.33 would invalidate this Cardano price prediction and instead indicate that new lows are expected for the price of ADA.
Cardano price has been falling over the past 24 hours, but there is no negative Cardano news that might have caused the fall. As a result, this is likely a short-term correction as a result of the previous increase.
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