Cardano price action set to slip to a 2-year low by next week
|- Cardano price action declines a firm 10% this week, and the trading day is not yet over.
- ADA price action has shown great respect for the monthly S2 support level, thus breaking it was a sign on the wall.
- Expect to see more downside with $0.30 in the crosshairs after another sharp fall.
Cardano (ADA) price action slips over 10% so far this week with no real pushback from bulls. Both the technical picture and current fundamental developments in global markets make perfect sense of where price action is currently residing. As the narrative for next week is not set to improve, with the ECB almost certain to implement another big rate hike, the risk is that another leg lower materialises. That would bring ADA Price action near the low of 2021 and possibly see a two-year low being printed anytime soon.
ADA price action at the risk of another 12% loss
Cardano price action was already looking vulnerable after receiving a rejection last Friday against $0.388. Since then, Cardano price action has been sliding and found support at $0.362 at the monthly S2 support level. Initially, it triggered a small bounce off that level, but then failed and ripped through it. The day after that, Wednesday, October 19, price action rallied a little, tested the resistance of that S2 level and saw it was no match for the bulls to take on, which triggered another drop of a few percentage points.
ADA price action is thus set to tank another 12% and start flirting with the low of 2021. That would be the low of January 27, 2021, around $0.30. Do not expect that level to give way that easily as it is an important low and the monthly S3 support level is just above there, so a double supportive layer needs to be cracked before it will break.
ADA/USD Daily chart
Although a turnaround or any chance of that looks bleak, it could still be possible. Earnings season has only begun and needs to pick up speed with still some big names scheduled to report, which could bring some positive spirit to the markets and see a rally in equities spilling over into a tailwind for cryptocurrencies. That would mean a return to $0.388 for ADA price, where the decline started last Friday.
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