Cardano's price is currently experiencing a sell-off after setting up a new all-time high on August 23. This downswing is likely to extend to find a stable support barrier before contemplating a new uptrend.
Cardano's price has been on a 113% upswing since August 9 as it set up a new all-time high at $2.98. While this rally was impressive, ADA seems to have exhausted its momentum as it encountered the 127.2% Fibonacci extension level at $2.87.
This move has resulted in a downswing that has pushed Cardano's price from $2.98 to $2.63, a 12% descent. The support level at $2.47 is the only close stable barrier insight, and ADA will likely consolidate here.
If the buyers band together, a second leg-up could originate there as well. This rally could slice through the $2.47 barrier to take another jab at closing above the 127.2% Fibonacci extension level at $2.87.
Clearing this area will push ADA into the price discovery phase, and if the bid orders continue to pile up, the 141.4% Fibonacci extension level at $3.07 could be the bulls’ next target.
If the buying pressure fails to manifest around the $2.47 support level, ADA will likely head to $2.38.
A breakdown of this barrier will open the chances of setting up a lower low. If Cardano's price produces a swing low below $2.38, it will invalidate the bullish thesis.
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