The Cardano (ADA) price has decreased since breaking down from the $0.350 horizontal area and could fall to $0.150 due to various bearish readings.

ADA is the native token of the Cardano blockchain platform. The platform uses a proof-of-stake consensus mechanism (POS) and specializes in decentralized applications (dApps) and smart contracts. It was founded by Charles Hoskinson.

While there was no direct Cardano news this week, Cardano’s founder recently tweeted his thoughts about the Lastpass hack. He stated that a longer master password is required in order to increase security, and the presence of 2-factor authentication will not improve safety in any way. This comes on the heels of his statement that he will not talk about XRP or their community again, due to what he perceives as toxicity against him.

The toxicity against Cardano does not stop there, however. Alex Svanevik, the CEO and founder of Nansen, reminded crypto Twitter about his March prediction that ADA will crash below a 30 Billion market cap. Charles Hoskinson has yet to reply to this jab.

The Cardano price fell below a descending resistance line since Aug. 2021, when it reached an all-time high price of $3.101. So far, the digital asset reached a minimum price of $0.241 in Dec. 2022. The downward movement caused an ADA price breakdown from the $0.350 horizontal area. Before the breakdown, the area had acted as support since the beginning of 2021. Now, the area will likely provide resistance.

Since the breakdown, ADA has gradually fallen and is now trading at $0.259. However, the next closest support area is at $0.150, which is a 38% drop from the current price.

Besides the descending resistance line and the breakdown from the $0.350 area, the weekly RSI also supports the continuation of the downward movement. The indicator broke down from its bullish divergence trendline (green line) and fell below 30.

As a result of these bearish readings, the most likely ADA price analysis is a drop toward the $0.150 area. In order for the trend to be bullish, the Cardano price has to break out from the resistance line and reclaim the $0.350 resistance area.

The readings from the daily time frame align with those from the weekly one. The ADA coin price broke down from a shorter-term descending support line and validated it as resistance on Dec. 27.

Interestingly, the daily RSI fell to 23 but has now moved outside of its oversold territory. This is considered a bullish sign. The last time it did so (green circles), a relief rally began. However, due to the strong rejection, an upward movement seems unlikely.

As a result, if the Cardano price reclaims the descending resistance line, it could initiate a relief rally toward $0.305. However, as outlined previously, the trend can only be considered bullish once the ADA token breaks out from the resistance line and reclaims the $0.350 area.

To conclude, there are three reasons why the ADA price trend is considered bearish:

As a result, the most likely Cardano price prediction for January is a downward movement toward the $0.150 horizontal support area.

For BeInCrypto’s latest crypto market analysis, click here.

The post Cardano (ADA) Price Bound for Another Correction Despite Already Immense Fall appeared first on BeInCrypto.

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