Cardano remains in a bearish trend after it broke below $1.83 support. Price continues making lower lows and lower highs. Price has now reached $1.31 and is trading below the 78.6% Fibonacci retracement of the entire rise from $0.99 to $3.08.
Red lines - Bearish channel
The RSI in the Daily chart is at oversold levels. Price is trading near the lower channel boundary. A bounce higher towards $1.40-$1.50 is justified from current levels, however it is very early to talk about major trend reversals. Price has retraced most of the upward movement and this is not a good sign for longer-term bulls. So far there is no bullish divergence signal, implying the downtrend remains intact and we should expect more downside. Resistance by the bearish channel is at $1.90-$2, as long as price is below that level we remain bearish.
