- Cardano price breached below import support and is set to steamroll bulls in its avalanche.
- ADA is set to drop another 10% and print a new two-year low.
- Expect support to come in around $0.265 with the low of December 2017.
Cardano (ADA) price is pulling out all the registers and issuing distress signals to the markets. Traders are exiting, call it even an exodus if you want, from their long positions in risk assets. The reality seems to be kicking in among investors that the Federal Reserve, the European Central Bank and the Bank of England are right on the money in calling out a global recession as traders all run for the exit.
ADA has one door to exit, and everyone wants to go through it at the same time
Cardano price sees its sell-off accelerate this Friday morning during the European trading session as global markets are selling off. Equities and equity futures are deeply in the red, while all major cryptocurrency pairs are dipping lower. ADA sheds even 4% in just two minutes of trading at one point. Traders are starting to grasp the harsh reality that a soft landing is not in the cards, a snowball recession is coming, and the avalanche is coming crashing down.
ADA thus printed the lowest lows in almost two years as it trades below $0.297. The only thing between now and $0.265, which is below December 24, 2017, and the monthly S1 support level, is the fact that the Relative Strength Index (RSI) is nearly touching the oversold barrier. Should the US session continue this sentiment, expect a breach of that barrier on the RSI and that sees ADA tank to $0.265 near the US closing bell.
ADA/USD daily chart
Upside potential could come over the weekend once the dust settles with a return toward $0.297, pairing back some losses. As traders get more time to digest the price action and the economic data calendar starts to slow down, more upside could come as price action restores itself. Maybe even $0.324 could be in the cards by New Year if ADA bulls return to the scene next week.
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