- Cardano's price action is slipping below the monthly S1 and crucial historical support.
- Once broken below this vital support, an area of 30% losses could be triggered.
- Expect bulls to await the FED meeting later this week before engaging in the market.
Cardano (ADA) price action is not seeing the turn in sentiment that was expected with the start of a new trading week. Geopolitical talks are ramping up again this Monday regarding Russia, and investors are awaiting details of monetary tightening by the FED later this week, making investors an absent party in the cryptocurrency market for the first few days of the week. As $1.01 is under fire, expect a break below to open the next leg lower towards $0.69, shedding another 30% of the price value for the altcoin.
Cardano price sees investors absent in the build up to the FED rate decision
Cardano participants seem to be split in half, with only sellers and bears present in the market, while bulls and investors remain on the sideline. The biggest reasons for this are the political rhetoric on Russia that is ramping up again this morning after statements that NATO and the US would send in more military material and troops. Financial markets, meanwhile, are awaiting the outcome of the FED monetary policy meeting Wednesday. These two tail risks keep price action muted or further to the downside, with investors sidelined.
ADA this morning is drilling down on the monthly S1 support level and the historical $1.01 level that goes back to March 05. Once this breaks, expect not much support to be present until $0.69 where the monthly S2 support level kicks in at around $0.75, but the most significant historical level is at $0.69 from February 06. Expect buyers to come in there as that would mean that ADA price action is back at 0% on a Year-To-Date (YTD) performance.
ADA/USD daily chart
As the FED holds the keys for a turn in sentiment short-term, expect a pop higher to unfold very quickly. A knee jerk reaction would wash out many short positions and bring price action quickly back towards $1.40, at the level of the monthly pivot and the green ascending trend line. Should the message from the FED by Wednesday be very dovish and in favour of risk-on sentiment, expect a possible test of $1.68 further to the upside for this week.
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.