Cardano price could fall more than 40% if ADA support fails
|- Cardano price is sitting right on top of a final support structure.
- A real risk of a greater than 40% drop is now possible.
- Upside potential exists but requires significant bullish participation.
Cardano price is facing a major collapse at the $0.76 value area. From Fibonacci, Ichimoku, and Volume Profile perspectives, ADA could be on the path to one of its biggest drops in two years.
Cardano price at risk of another flash crash to sub $0.50 price levels
Cardano price is sitting right on top of its final, primary support structure. The $0.76 level represents the 61.8% Fibonacci retracement and the upper range of the current 2022 low. It is also the end of a high-volume node in the 2021 Volume Profile.
Below $0.76 is price discovery until the next high node and 2021 Volume Point of control in the $0.35 value area. Any sustained period of time spent below $0.76 increases the likelihood of a major flash crash for Cardano price.
From an Ichimoku perspective, Cardano price is in a clear bearish breakdown on the daily chart. However, a Kumo Twist occurs on May 14, so any downtrend or continued sideways trade may end around that date. In addition, the 180-day Gann Cycle of the Inner Year is also still in play, indicating a swift change in direction can still occur.
If Cardano bulls want a clear display of a return to bullish price action, then they’ll need to push for an Ideal Bullish Ichimoku Breakout. For that to occur, Cardano price needs a daily close at or above $1.05.
ADA/USD Daily Ichimoku Kinko Hyo Chart
The road to retest the all-time Cardano price highs becomes increasingly easier above $1.05 as the Volume Profile thins out considerably. However, rejection should be expected at $1.30, where the second-largest high volume node from 2021 and the 38.2% Fibonacci retracement exist.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.