Cardano price could sweep 2022 lows unless this happens

ADA price is falling in free-fall fashion.
Cardano price shows disturbing volume signals.
Invalidation of the downtrend remains at $0.714.

Tony M.FXStreet Contributor

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.

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Author

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.