• Cardano price gets its first punch alongside markets tanking for the third day this week.
  • ADA, for now, acts within the boundaries of range trade.
  • Once the bottom side breaks, expect a massive decline toward $0.21.

Cardano price at risk a firm one-directional move to the downside as markets and traders are starting to fret about the next steps forward for global markets. With several asset classes erasing the earlier gains, it becomes clear that any uptick was a mere bear market rally. Dead cat bounces all around, and the selloffs have not been accelerating yet, it could start a snowball effect that could take out quite a few important positions in the markets.

ADA set to shrink by a third

Cardano price, thus not bear any nice Christmas gifts, and rather some cold showers and possibly massacres amongst the portfolios of several traders. Not only is the decline itself dreadful, of course, but the replications yet again on the back of FTX and its default could also be enough to take out another pion on the cryptocurrency stage. A hedge fund already defaulted earlier this week with tens of millions in crypto loans unable to repay, so the question is not who but when the next casualty will fall.

ADA will, for now, trade a bit sideways between $0.324 on the top side and $0.297 on the downside. Once that downside level breaks, the descent could go quite rapidly, with $0.260 as the first support at the monthly S1. If that does not hold, should, for example, another key crypto service default and drag along billions of investors with it, then $0.21 is the right price tag for ADA by then.

 ADA/USD daily chart

 ADA/USD daily chart

If markets start to shake off the bearish mood again and try to push price action back up into a squeeze against any bearish level, expect to see a break to the upside above $0.324. Expect moves to be rather small, and by next week $0.350 could be in the cards, in case the 55-day Simple Moving Average can change its descent a bit. For the end of the year, look for $0.400 possibly, should markets receive some supportive messages from Jerome Powell and Christine Lagarde.


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


Recommended Content

Editors’ Picks

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.

More Cryptocurrencies News

MATIC sets for a rally as Polygon Foundation confirms the migration date

MATIC sets for a rally as Polygon Foundation confirms the migration date

Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.

More Polygon News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.

More Bitcoin News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million. On-chain data indicates oversold conditions for BTC, suggesting a possible market bottom.

Read full analysis

BTC

ETH

XRP