• Cardano price drops below $0.40 as Bitcoin drags cryptocurrencies into recession.
  • ADA price sees traders holding their breath while avoiding new lows for the week.
  • Expect a 20% decline on the back of the Federal Reserve statement later today.

Cardano (ADA) price keeps its together quite good this Wednesday as other major cryptocurrency pairs are nearing key levels, with Bitcoin flirting around $20,000 and ETH nearing $1,000. Markets got blindsided by an emergency meeting from the ECB, hinting that Frankfurt is seeing issues in the rising spreads from Italy after they announced stopping with their bond buying program as of July. With traders on edge, ADA price is refraining from making new lows for now, but the Federal Reserve meeting later today could be just that one event to many in order to keep price action in check. 

ADA holds it together for now, with traders on edge

Cardano price sees mayhem in the markets this Wednesday with surprise meetings from the European Central Bank just hours before the Fed, the US central bank, is set to become more hawkish as initially perceived. Traders, however, are keeping their act together in Cardano as it refrained from making new lows while big brother Bitcoin is on the cusp of breaking below $20,000. Eventually, the lower break should come for Cardano as most stars are aligned for ADA price action to drop lower.

ADA price will drop towards $0.37 at the monthly S1 support level, which would take out the low of May 12 at $0.384. The Relative Strength Index still has some room to the downside, opened up before hitting the oversold barrier. Expect BTC to break below $20,000, with either the Fed or ECB statement to be enough as a trigger to do so.

ADA/USD daily chart

ADA/USD daily chart

As plenty of headline risk is possible this Wednesday, a positive surprise could bring some relief and soothe the tone in the markets a bit. That would be ideal for cryptocurrencies to move in and rally. ADA price would quickly pop back above $0.50 and swing possibly back to $0.60 before testing the monthly pivot and the 55-day Simple Moving Average as caps on the upside.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price all but confirms a bearish breakout amid opposing on-chain metrics

Bitcoin price all but confirms a bearish breakout amid opposing on-chain metrics

Bitcoin price shows a confluence of bearish developments that suggests an incoming downtrend. This development could halt the bullish outlook seen in Ethereum and other related altcoins. Bitcoin price is in a classic Wyckoff Distribution Phase.

More Bitcoin news

Chainlink Price Prediction: The good, the bad and the ugly of this LINK top reversal pattern

Chainlink Price Prediction: The good, the bad and the ugly of this LINK top reversal pattern

Chainlink price shows an interesting setup that could result in a steep correction and an eventual undoing of the gains. While the former scenario is plausible, the latter is a worst-case outlook and has relatively less chance of manifesting.

More ChainLink news

Crypto Sleeping Giants: Enjin Coin Price - A 3000% rally by 2023

Crypto Sleeping Giants: Enjin Coin Price - A 3000% rally by 2023

Enjin coin price could become a crypto outperformer in the next bullrun. Key levels have been identified. The Enjin token, an Ethereum based gaming token witnessed a 14,000% rise between March 2020 lows at $0.03 and the 2021 highs at $4.85.

More Enjin Coin news

​​​​​​​​​​​​​​Got It! This Shiba Inu price trade worked out perfectly, here's what could happen next

​​​​​​​​​​​​​​Got It! This Shiba Inu price trade worked out perfectly, here's what could happen next

Shiba Inu price tags the intended $0.00001550 target. Shiba Inu price has recently rallied an impressive 35% in just one day. Throughout the summer, the outlook has been maintained at a short-term bullish stance with targets in the $0.00001400 -0.00001550 area.

More Shiba Inu news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP