- Cardano price tanks as central bankers return to the markets with harsh warnings.
- ADA sees bulls booking profit and quickly heading for the exit.
- With crucial support nearby and sell-side offerings exploding, the risk of a quick 10% dip lower looks granted.
Cardano (ADA) price is set to tank over 10% as pressure mounts on a crucial support level that is key to keeping this rally going. Lower highs are generated for a fifth day in a row, revealing a massive squeeze to the downside. Overnight headlines on the bankruptcy of crypto broker Genesis are only working as a catalyst for the fire that started burning after central bankers soured the party mood that global markets were having in the first two weeks of the year.
Cardano price set to break below $0.32 crucial level
Cardano price is not enjoying the week thus far and is set to close out this week with a loss. Not only were the daily gains snapped over the previous weekend, but two major headwinds were added this week that are unlikely to evaporate overnight or after the weekend. The first major issue is that central bankers got unleashed after awakening from their hibernation and did not like what they saw on the quote boards in all asset classes.
ADA thus had only one direction to go: down. Central bankers have been screaming bloody murder that markets were wrong-footed. Markets should consider more hikes, declines in price action and increasing unemployment as all central banks, in a joint effort, want to bring inflation back to 2%, whatever it takes, whatever the cost. Translated to Cardano price, this means that $0.32 is set to break, seeing the mounting pressure of those lower highs in a squeeze to the downside, and $0.297 is the first level of support with the low of January 27, 2021 and the 55-day Simple Moving Average (SMA) present to catch the price action.
ADA/USD daily chart
An upside surprise could only come out of the data corner. Should several data points point to a further slowdown and decline in inflation for the US, Europe or the UK, that would mean good news as central bankers are nearing their pivot level. Expect the Goldilocks scenario to be back on the table soon enough if that is the case and the rally to continue after first breaking above $0.37. With the high of 2023 broken to the upside, the rally can extend toward $0.388 with 15% gains.
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.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.