- Cardano price sees pressure mounting to the downside.
- ADA price could see $0.415 losing support and opening a big area with rapid losses.
- A full paring back to the utmost lowest levels near $0.075 could be in the cards.
Cardano (ADA) price sees a rapid danger nearing from above as a technical bearish element pushes a squeeze on price action to the downside. Expect with that pressure mounting, bulls to get pushed with their backs against the wall near $0.415. Once that level breaks, only a small fail-safe level could refrain ADA from not falling a whopping 80% and, in the process, be downgraded to a penny stock.
ADA price at risk of turning into a penny stock
Cardano price could become a penny stock or pink slip as a clear and present danger quickly closes in from above. That pressure comes from the 55-day Simple Moving Average rapidly nearing the peaks of the weekly candles and looks almost ready for a showdown either next week or the week after. Meanwhile, bulls get squeezed against the supportive level at $0.415, and once that breaks, markets could start to tremble.
ADA price only has $0.365 the monthly S1 support level from June to July to back any sharp drops. With no actual historical tests to go forth in, it does look like a feeble supportive level to consider. As thus the safety net looks quite fragile to try and catch the massive bearish snowball that is coming, a complete implosion of ADA price could be in the making and ultimately could result in an 80% loss with price action trading against pennies.
ADA/USD weekly chart
It could as well be none of that, and $0.415 quickly provides support for a bounce off its level, triggering a return to $0.50 and bulls, this time squeezing bears against the 55-day SMA. If they can unchain price action from that bearish element, expect a quick run up towards $0.715, as every bull will want to be part of this breakout. That would be a welcomed 45% gain, not seen in a long time.
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