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Cardano price is down 7% on the day.
ADA could decline toward the $0.30 level, resulting in a potential 20% decline.
Invalidation of the bearish thesis would arrive from a breach above the new year-to-date high at $0.421.
Cardano price is down 7% on the day as the 9% surge witnessed on January 15 has been almost entirely reversed.
Cardano price witnessed a significant surge of 9% on January 15, reaching a high of $0.42, but the current sell-off indicates that the bullish momentum was short-lived. While the uptrend is not yet been confirmed to be over, traders should exercise extreme caution near the current price levels.
Cardano price currently auctions at $0.39, down 7% since the opening bell. The Relative Strength Index (RSI) adds fuel to the bearish flame as the daily outlook for Cardano shows a bearish divergence with the new high at $0.42 and the previous range high at $0.34. This indicates a potential reversal for the bullish trend, with a bearish bias in the short term.
Considering these factors, Cardano could decline toward the $0.30 level, resulting in a potential 20% decline. The target zone is the origin point of the RSI’s Divergence levels.
ADA/USDT 1-Day Chart
Invalidation of the bearish thesis would arrive from a breach above the new year-to-date high at $0.421. If Cardano breaks through this resistance level, the bulls could take over and push the price up to the $0.500 level, resulting in a 25% increase from Cardano’s current market value.
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