• ADA price has crossed a critical Fibonacci level.
• Cardano price volume still looks bearish.
• The invalidation of the bearish case is a close above $1.00.

Cardano price continues its downward trajectory as the bears printed a bearish engulfment through a significant Fibonacci level. Bulls still involved are at high risk of a “sweep the dips” capitulation event.

Cardano’s price correction looks too deep for another bull run

Cardano’s price is disappointing traders this week as price action continues to see bearish force. Yesterday, ADA price saw a major sell-off at the $0.82 level, maintaining the lowest price for April. Traders may have been bullish as ADA price was showing a classic bullish cut and handle pattern. A Fibonacci retracement level now surrounding the move suggests the bears have gone too far as Tuesday’s bearish engulfing candle broke the critical 78.6% level.

Cardano price could likely sweep the lows at $0.77 and $0.75. Before the sell off occurs, traders should expect countertrend moves, potentially back to the $0.90 low. Nonetheless, this ADA price thesis is documented as bearish until proven otherwise. It should be noted that the volume seen on Tuesday is relatively large compared to the overall downtrend. So there is still no reason to expect a strong bullish reversal.

ADA/USDT 4 hour chart

Invalidation of the current downtrend is a close above $1.00. If traders manage to conquer the $1.00 price level, the $1.25 price level could be the next likely target, which would lead to a 50% increase from the current ADA price.