Cardano (ADA) is about to break down the support!

Hello, everyone!

As you know, sometimes I can take the trade on ADAUSDT instead of Bitcoin. Today I am going to show you my thoughts about this asset, what we can wait in the nearest future.

ADA demonstrated the bounce in the first half of 2023, formed the bearish divergence with the Awesome Oscillator. This is the clear sign, that it was just a correction to the downtrend impulse. I consider the final bearish wave which should be ended with the 5 waves cycle. If we suppose that wave 1 has been already formed, ended just at the support trend line, now we can expect the reactive wave 2. It has the target at 0.61 Fibonacci retracement, $0.41.

This potential bounce could be the nice bull trap. The wave 3 which is going to follow this bounce can easily break the support line. It has two targets: $0.29 and $0.22. My plan is to wait this bounce to open short trade.

Best regards, Ivan

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