Cardano Price Forecast: Bearish Shift and Risks

Cardano (ADAUSD) broke down below the May 2022 bear market low last week to signal a more bearish theme resurfacing. This has rejected the intermediate-term bottoming process that had been developing since May and now shifts risks lower for deeper downside targets.

Cardano Has Surrendered the May 2022 Bear Market Low

An early October sideways consolidation phase for Cardano saw a sideways push below the tentative basing trend line support that runs off of the May and July lows at 0.3885 and 0.4028 respectively. In addition, the ADAUSD market had been unable to push higher and build on the intermediate term basing effort evident from May, incapable of overcoming the downtrend line off of the August recovery peak at 0.5947 and through the September swing high at 0.5199. After the break below the aforementioned tentative support trend line, mid-October has seen an acceleration lower to surrender both the July low and the 2022 bear market low from May at 0.3885. Initially this took the market to 0.3495 last week, but further losses this week have seen a new low posted today at 0.3472.

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Intermediate-Term Base Has Been Rejected, Bearish Threat Renewed

The combination of the inability to overcome resistance, the willingness to surrender support and the establishment of a new short- to intermediate-term bear market from August for ADAUSD highlights a renewal of downside pressures into latter October and likely on into November and potentially into year end.

Cardano Downside Prices Targets

There is now a strong threat of a more bearish extension for the Cardano price. The initial downside price objective for latter October would be .0.3000/2950, with the threat into November closer to .0.2550/2525. The overshoot risk into year-end would be for a deeper sell off down towards .0.2000/1875.

However, a rebound back above 0.4268 would quickly target a challenge to 0.4377, then maybe open risk up towards 0.5199.