Cardano price to rebound from fresh monthly low as 2023 rally unwinds further
- Cardano price tanked over 2% in ASIA PAC trading on Friday.
- After a strong rebound in US equities, Asian traders killed the recovery in ADA.
- Expect to see more sell-offs as the January rally of 2023 gets unwound.
Cardano (ADA) price sees bulls leaving the scene as ADA tanks on Friday morning. Although US equities were able to trigger a turnaround and close Thursday off with a net gain, someone in Asia clearly did not get the memo. With a severe drop in the ASIA-PAC session, a bounce is underway though another sell-off looks granted into next week.
Cardano price could burn through 18% of value before finding support
Cardano price will collapse further in the coming days as investors start reshuffling their investments with less exposure to risk assets. Although equities got fired up in the late US session on Thursday, the sentiment was not handed over to the Asian investors this Friday morning. With another sell-off of roughly 2% and breaking through support at $0.324 and the new monthly S1 pivot, more pain looks inevitable.
Expect ADA to recover going into the US closing bell this evening, but it is best to ignore the price action. Going into next week, another sell-off looks granted as morale has clearly been broken among bulls. The monthly S2 near $0.30 will be the next and last floor in this decline before bears try to reach $0.265 to unwind this recovery attempt fully.
ADA/USD daily chart
If bulls can take the helm again and push price action back up though, Cardano price might be better positioned by Monday to withstand any market woes and could get a jump higher. Do not expect $0.39 to be back in a heartbeat however. Rather be realistic and look for $0.36 as a short-term price target for ADA to book some gains on.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
