ADA Price Analysis: Cardano price set to print new yearly low before New Year

Cardano (ADA) price is officially on a losing streak as price action is tanking for a third day in a row. The decline comes as liquidity wears thin, and traders are fleeing further into safe havens as markets gear up for a recession in 2023. Although equities rallied on Thursday, only a fraction of the losses got paired back, as a negative close was unavoidable;

Cardano price needs to turn the page soon

Cardano price should be scaring traders away by now, or at least have them stay out of it for a moment and do the much-needed homework for 2023 to time the right entry and take-profit levels. There is no point in engaging in this decline, as the risk of starting 2023 with a too-negative balance is too big. Rather wait, step aside, and let the mayhem occur, and only after then engage in the price action to start building up long positions.

ADA price thus needs to see this pain trade through, as Socrates had to empty the poison cup to the bottom. Let the avalanche run through, possibly towards $0.200, with the pivotal support level at $0.194 providing the most secure support level nearby. To add everything up, traders must remember that another 20% decline is still possible. 

ADA/USD daily chart

Upside potential, although unlikely at the moment, must be traded with big precautions. The first level to the upside would be, of course, $0.265, a pivotal level that got broken and falls in line with the monthly S1 for December. Once price action can break and close above there, expect a massive influx from bulls and see price action rally up towards $0.297 or $0.300.