Cardano price has been largely bearish for quite a long time, being unaffected by the market conditions
The technicals have been extremely bearish due to which the price may soon encounter a fresh price plunge soon
Cardano, after breaking down from the crucial support at around $0.35 is considered to remain within the bearish trend until it reclaims back the levels. The price earlier had reached lower lows at around $0.301 in August 2021 and $0.295 in November 2021. Post to which the price has been hovering along the same levels and constantly deafening the last point of defense at $$0.296 multiple times.
However, the lowest support for the ADA price is around $0.15 which appears to be imminent if the bulls fail to sustain at the present levels. Besides, the RSI is displaying some bullish divergence, due to which some risks could be invalidated. Regardless of the bearish pattern in the longer time frame, the price continues to trade within a descending parallel channel.
This is considered a bullish pattern as the price could undergo a significant breakout but the trend within the channel remains largely bearish. The ADA price is trending very close to the channel’s support line, being in a lower position since the beginning of November 2022. Secondly, the daily RSI has broken down from its bullish divergence which is an indication of a bounce.
Therefore, the yearly close can be considered extremely pivotal for the Cardano price which may have a larger impact on the yearly end. The bulls are expected to hold the price right up and if they fail to do so a major drain may drag the ADA price lower very soon.