- Cardano price is set to tank another 30% before finding support.
- ADA price will enter a distribution zone around $0.50, where bulls are ready to build a massive stake.
- Expect a sharp rebound to $1.00 as the ultimate profit target as bulls squeeze prices higher.
Cardano (ADA) price is missing any action from bulls, but as price action is delivered at the mercy of the bears, bulls are fretting about a plan to spark a turnaround. With the US dollar's strength, bulls will sit on their hands and wait for the right buying opportunity, which lies around $0.50, where a distribution zone is waiting for massive buying. Once the distribution phase is completed, expect a bullish breakout, with an accelerated upswing towards $1.00.
ADA price set to book 100% gains from the low of 2022
Cardano price saw a strong rejection against $0.9150 last week, which triggered a complete pairing back of the gains locked in the previous trading day. With that rejection, bears used the momentum to further accelerate losses as the US dollar strength only attributed to more downside in ADA price. Cardano price is testing $0.6900, which coincides with the lows of February 2021.
ADA price is more than sure to break below that level as the US dollar strength is looking to continue for another round, but with that downturn, the opportunity comes for bulls to scope up ADA price at an attractive discount. A distribution zone awaits near $0.50 where bulls can buy in heavily and squeeze price action to the upside, triggering bears to get out and see buy-side demand exploding. ADA price will pump higher towards $0.9150 before jumping the final tranche to $1.00.
ADA/USD daily chart
With the EU bloc still divided on what to do with the next round of sanctions, the EUR/USD equation does not look to favor any upside anytime soon, though. As the US dollar strength will remain for another few trading days or even weeks, expect to see ADA price start to see several legs lower with the risk that Cardano might be decimated to $0.11, which would erase all the gains from 2021 and put it back to 2020 values. Translated into numbers, that means a whopping 85% devaluation from where ADA price is trading at the time of writing.
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.