Cardano price could sweep 2022 lows unless this happens

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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