Cardano Price Prediction: The final drop before a 5x bullrun

Cardano Price Prediction The final drop before a 5x bullrun

In Short

  • Cardano price coils in triangular fashion under low volume.
  • A breach of $0.42 could catalyze a 40% decline targeting $0.24.
  • Invalidation of the triangle thesis is a breach above $0.59.

Cardano price could embark on a 40% decline if the liquidity under $0.40 is breached.

Cardano price edges near pain

Cardano price sideways action throughout the summer has marked a big question mark for the smart contract token. What’s going on with ADA? The price swings have been erratic and unpredictable while the volume profile indicator persistently tapers. AeroInvests’ CEO and Author Constance Brown’s quote about triangles may be the answer to the Cardano confusion. “Whenever things do not make sense, a triangle is likely forming.” 

Cardano price currently auctions at $0.447, just above the ascending trend line, which provided in July at $0.417. The Relative Strength Index shows divergence between each major high and low, which compounds the idea that the triangle thesis is correct. 

ADA USDT12-Hour Chart
ADA USDT12-Hour Chart

A breach of the $0.42 level established on August 29 could be the catalyst to end the congestion. A 5-wave impulse south targeting $0.24 could ensue. A classical trade setup would place the invalidation point above wave C at $0.59. Traders with a higher risk tolerance could place their stops above wave E at $0.52.

Investors should remember that triangles are usually the last pattern before a reversal occurs. Buying a bottom could be worth a shot if a five-wave impulse is established after the future triangle breakout. Cardano could then reroute north towards all-time highs in the coming months. Such a move would result in a 500% increase from the current market value.

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Tony Montpeirous
Tony Montpeirous
Tony Monpeirous is a full time crypto trader and chart analyst at Coinmash and FXStreet. His style of trading includes, Elliot Wave, Auction Market Theory, and Classic Price Action techniques. When he is not on the screens, Tony enjoys music, cooking, and learning new skills.