- 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 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.