- ADA price is falling in free-fall fashion.
- Cardano price shows disturbing volume signals.
- Invalidation of the downtrend remains at $0.714.
Cardano price is on track to sweep the May 12 lows at $0.39. Traders who have not entered following last week’s bearish thesis should wait for continuation signals.
Cardano price takes a blow
Cardano price, like several cryptocurrencies, is experiencing a steep sell-off to start the third trading week of June. The crypto market as a whole is in a selling frenzy amidst UK inflation hikes, upcoming FOMC meeting, and overall consumer fears as oil and agriculture continue to see unprecedented demand.
Cardano price currently trades at $0.44. The bears have established a strong engulfing candle on the 2-day chart, which looks unchallenged. The engulfing candle is accompanied by severe selling pressure, which may indicate a sweep of the lows event in the coming days, as the May 11 lows at $0.39 never saw a second leg. If smart money does not step in to support Charles Hoskinson’ notorious smart contract token, a mudslide could ensue into $0.29.
ADA/USD 2-Day Chart
Invalidation of the bearish downtrend remains at $0.714. Traders who did not participate in last week’s bearish trade setup should wait for a consolidation period on the daily chart before attempting to board the already moving train. If the bulls can breach $0.714, the bearish downtrend could be qualified as over. The bulls could reroute towards $0.88, resulting in a 100% increase from the current Cardano price.
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.