Cardano price is experiencing extremely bearish market conditions. The technicals hint that a powerful wave 3 is underway. Countertrend scalping the pullbacks would be ill-advised.
Cardano price is falling fast
Cardano price is experiencing a mudslide during the third trading week of October. Since the start of the week, ADA, the self-proclaimed Ethereum killer token, has declined by 10%. The technicals suggest the decline is only the beginning of a much larger move south.
Cardano’s price currently auctions at $0.3419. The impulsive decline was prompted by a pennant-like. It is common for pennants to show up in developing Wave 3 trends. The Relative Strength Index also now breached oversold territory, which compounds the idea of a wave 3 in development.
The next bearish target is the $0.30 level. If the bulls do not step in to provide immediate support, a $0.25 price ADA will become the norm. Invalidation of the bearish outlook can occur if the bulls manage to take the Pennant’s origin point at $0.37.
If the invalidation level is tagged, ADA could recover some of this month’s losses. A plausible countertrend target would be the 21-day simple moving average at $0.40, resulting in an 18% increase from ADA’s current market value.