• Cardano price closes the week with another loss on the books.
  • ADA price looks set to choose more downside as investors are turning away from cryptocurrencies.
  • Expect another drop with at least a retest at $0.415, possibly a selloff towards $0.075.

Cardano price is being dragged into the turmoil of cryptocurrencies losing their favorite status. They started to be deemed unreliable and too exposed to waves in financial markets. In the aftermath of the Terra LUNA massacre, the image of cryptocurrencies got severely damaged and has made retail investors and traders realize significant losses could be at hand if things really go south big time. With that in the back of their minds, Cardano price is set to enter another round of pain trades with a drop back to the low of last week near $0.415, and at risk of slipping 85% after that level towards $0.075.

ADA price at risk of turning into a penny stock trade

Cardano price is at critical risk of closing the week with yet another loss in the trading books. With a seventh consecutive week of losses, a turnaround does not seem to be anywhere near the vicinity. There are no fundamental support levels or elements bulls can hang on to for an entry and turnaround. Entering here would be foolish as stops and stop losses within the trade management would be too exposed for a squeeze. 

ADA price instead looks set for at least a test to the downside towards $0.415, which has caught the falling knife on the previous week. It coincides with the S3 of last month and the S2 of May, making it a fascinating area for a possible handover of power from bears to bulls as the Relative Strength Index is nearing that low point before trading into oversold. Nonetheless, the risk could be that a technical break could trigger a fire sale at ADA price and run price action down towards $0.075, battering the cryptocurrency with over 85% of losses. 

ADA/USD weekly chart

ADA/USD weekly chart

Sparking a turnaround could come from some broad and solid risk on, in the markets, as those heavy tail risks get deflated. For example, the Ukraine situation died a little bit in the background, with China succeeding in performing a soft landing for the economy. These elements could create a mild but longer-term tailwind for Cardano price and other cryptocurrencies as belief and trust are restored. Expect on the back of that for ADA price to pop back towards $0.715, break above the red descending trend line and rally back to $0.900 against the cap of the 55-day Simple Moving Average. 

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto winter to resume in Q3

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto winter to resume in Q3

Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot yet again – their moves accelerated after a panel discussion that was held at Siyntra for the ECB yearly economic forum.

More Bitcoin News

Coinbase’s new SOL staking program won’t save Solana price from this brutal outlook

Coinbase’s new SOL staking program won’t save Solana price from this brutal outlook

Solana price is lacking bullish momentum, which has led to a huge correction. This pullback comes after an impressive recovery rally seen across the entire crypto space. 

More Solana News

Why TRON's TRX price can flash crash

Why TRON's TRX price can flash crash

A brief technical and on-chain analysis on TRON price. Here, FXStreet's analysts evaluate where TRX could be heading next.

More Tron News

With Grayscale suing the SEC, how will Dogecoin price and crypto markets react?

With Grayscale suing the SEC, how will Dogecoin price and crypto markets react?

Dogecoin price witnessed a massive bounce last week but recently pulled back due to the market condition. Since then, DOGE is trying to find a stable footing for the next leg-up. 

More Dogecoin News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP