Cardano Price Downtrend May Be Just a Retraction

Cardano's price has been in a downtrend over the past eight days, losing 11.2% of its value since August 7th. The altcoin had made a bullish structure break on August 6th but slipped into a retracement phase. Despite this, buyers may be ready to strike as the swing structure remains bullish and the Fibonacci retracement levels suggest a potential turnaround.

The recent losses were part of a retracement, with Cardano's price already below the 50% level within a discount area. A growing discount would make ADA a better buying opportunity for swing traders. The golden pocket between the 78.6% and 61.8% retracement levels is around $0.165-$0.175.

For now, traders are advised to wait for the key Fibonacci retracement levels to be tested before entering the market. A turnaround in the OBV and average trading volumes would indicate that the retracement phase is ending.