After the major surge in mid-December 2018, the market seems to have found an exhaustion point. The retrace gives an opportunity for sideliners to buy in before the next upswing. Although the plunge has been more drastic in altcoins than in Bitcoin, this technical analysis will evaluate whether Cardano, Chainlink and Ravencoin are doomed to continue falling.
After moving between the 16.18 and 38.20 percent Fibonacci retracement level for nearly two months, Cardano broke below support and reached the 61.80 percent Fibonacci retracement area where it is currently trading at. If this price point is able to hold, then ADA could be preparing to rebound to the 50 or even the 38.20 percent Fibonacci retracement zone.
An upswing could indeed be expected now that Cardano has reached the 40.50 percent retracement target given the ascending triangle that was forming on the 3-day chart.
Therefore, in order for this cryptocurrency to go back up to the 50 or the 38.20 percent Fibonacci retracement level, the setup trendline must hold and a buy signal in the form of a red nine should be given by the TD Sequential Indicator on the 1-day chart. Since ADA is currently trading on a red seven there could be another two days of bearish momentum before a bullish signal is given by this technical index, which increases the likelihood for a continuation of the downward trend that could take Cardano to the 78.60 percent Fibonacci retracement level or around $0.045. Everything will depend on the price action seen before the green nine is given by the TD Sequential Indicator.
Chainlink recently experienced a significant increase in its market valuation rising from $1.11 to $4.80 in a matter of sixteen days.