- 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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000
Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.
Ripple is now only 3% away from becoming a bigger entity than Binance Coin
Ripple has overcome a lot of obstacles on its way to becoming the world’s fifth-largest cryptocurrency, as witnessed by the recent rise in XRP price. The native token of the world’s biggest crypto exchange, Binance Coin, on the other hand, has been moving in the opposite direction.
Ethereum leads altcoins north as Bitcoin halts amid bull trap fears
Ethereum (ETH) price remains northbound, unrelenting despite the king of cryptocurrency, Bitcoin, showing weakness. Behavior analytics tool Santiment observes that Ether and altcoins are on a tear even as BTC momentum fades.
BTC headstrong as Spot ETF talks reach technical stage
Bitcoin remains steadfast on the higher timeframe, amid news that spot BTC exchange-traded funds (ETF) discussions are now at the technical stage of approval. Specifically, talks with Spot BTC ETF issuers have advanced to key technical details, with Reuters indicating that it could signal a shift toward a potential approval.
Bitcoin Weekly Forecast: BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice
Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.