- Cardano price tanks for the second day in a row.
- ADA price tests the uptrend backbone and could be set to break through to the downside.
- Expect to see investors become nervous, but a false break could see buyers line up for the opportunity to go long.
Cardano (ADA) is seeing its attempts to pop towards $1.50 being cut short by some bearish comments from a FED official and markets being on edge on new sanctions that could hurt Russia and the global market as a whole. With more sanctions on Russia, the tail risk of further escalation is also becoming a greater probability. This is weighing on global markets, with equities on the backfoot and cryptocurrencies in retreat.
Cardano price faces a test, but intelligent investors see an opportunity
Cardano price looked set to top $1.24 and hit new highs for both March and April, but instead got cut short with investors worried about the new sanctions announced today. The risk is that with these new rounds of sanctions, Russia gets pushed more into a corner and could bite back. Some products in Europe are already seeing a doubling in price or empty shelves in the case of sunflower oil, as well as a scrambling for agricultural fertilisers that were mostly produced in Russia. Investors are fretting over this and are pulling out of their equity and cryptocurrency positions again. This is squashing ADA price against the green ascending trend line that has been the backbone of the uptrend on its price chart since March 16.
ADA price saw investors coming in during the ASIA PAC session and withstanding the bearish pressure against the ascending trend line. In the meantime, this is an excellent window of opportunity to get back in long as the Relative Strength Index (RSI) is trading back at more moderate levels, away from being overbought. A possible break to the downside will findsupport at the new monthly pivot at $1.056 which will result in a bear trap once bulls have pushed price action back up above the green ascending trend line again. Following that squeeze, expect to see ADA price rally up towards $1.40.
ADA/USD daily chart
Should Russia lash out and start putting out embargos against the EU and further strengthen its ties with China and India, expect markets to undergo further bearish pressure. For Cardano price that would translate into $1.00 coming under siege and possibly a break back below the 55-day Simple Moving Average towards $0.779. That would mean another 31% decline and ADA prices back to where they were at the beginning of the Ukraine crisis.
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
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
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.