- Cardano price is in a steep downtrend and consolidates above.
- ADA hovers above a 2021 liquidity zone.
- Invalidation of the bullish trend is a breach above the previous range at $0.32.
Cardano price could be setting up for a monstrous decline. When writing all signals point south, the bulls must rally considerably to consider a safe countertrend scenario.
Cardano price is in a free-fall decline
Cardano price currently consolidates in the mid $0.20 zone after enduring a 19% decline on the month. On November 23, the scalable smart contract token hovers within a 10% radius of the 2021 swing low at $0.228.
The swing low is a significant liquidity level that has remained untested since it was first established on January 11, 2021. Cardano would then go on to rally nearly 1200 percent into the all-time highs at $3.10 by August of the same year.
Cardano price currently auctions at $0.2593. While the technicals of an upcoming liquidation seem promising, on-chain metrics are playing devil's advocate. According to FXStreet's News Reporter Ekta Mourya, "Cardano addresses holding between 10,000 and 100,000 ADA tokens have added $83 million worth of ADA since November 7." The high cap interest for Cardano is certainly intriguing, but the technicals have yet to align. Time will ultimately judge who is on the right side of the trade.
ADA/USDT 12/23/22
ADA would then need to establish a consolidation above the aforementioned zone. Under the ideal scenario, the bulls could prompt a countertrend spike towards the $0.40 range established throughout the Fall, resulting in a 57% increase from the current Cardano price.
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
Arbitrum’s ARB price rallies after Chainlink CCIP mainnet launch
The protocol’s arrival on Arbitrum is key to the further development and growth in the ARB ecosystem as it is expected to improve the user experience and attract developers.
BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.
FTX fights to clawback $157 million from former employees while creditors struggle with $7.9 billion in claims
FTX exchange has sued former employees of Salameda, a Hong Kong based entity affiliated with the trading platform. The court filing shows that the bankrupt exchange seeks to recover $157.3 million from Salameda employees.
First Ethereum futures ETF expecting approval by October 2
The first Ethereum futures ETF (exchange-traded fund) is likely to be approved on October 2, according to crypto hedge funder Hal Press. The North Rock Digital founder’s thesis is based on the recent events in the crypto ecosystem.
Bitcoin: BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.