- Cardano price dropped nearly 23% during the Thursday trading session.
- Massive incoming volume shows the bottom is likely in for ADA.
- Multiple time cycles complement price action for a new uptrend for Cardano.
Cardano price action has been some of the most bearish in its history. In fact, The nine-month stretch from September 2021 to May 2022 is arguably the most devastating price action Cardano has ever experienced. However, a low may have been found, and a resumption of the bull market is likely to occur soon.
Cardano price recovers nearly all of its daily losses during the late NY session
Cardano price is on track to retrace almost the entirety of its nearly 23% wipeout for the day. The daily volume (not shown) is thus far the third-highest volume traded day of 2022 and the third-highest since the all-time high made in September 2021. Volume has been steadily increasing on a daily average since the middle of April 2022 – and if volume does precede price, then ADA is ready to bounce and bounce hard.
New fifteen-month lows were hit for Cardano price, pushing ADA into the $0.30 value area for the first time since February 2021. Support was found primary at $0.40, where the 88.6% Fibonacci retracement and just above a high volume node in the 2021 Volume Profile.
ADA/USD Daily Ichimoku Kinko Hyo Chart with Gann's Square of a Range
From a time cycle perspective, there are multiple reasons that Cardano price will reverse and begin a new and extended uptrend.
- Kumo Twist on May 13th.
- 50% range of the current Gann Square of a Range
- 240-day Ganny Cycle of the Inner Year (tends to be a low if the market is in an uptrend)
- 49 – 52 day Gann ‘death cycle’ (often terminates blow-off moves - like what ADA has experienced this week).
The initial resistance zone that Cardano price will like face is the 50% Fibonacci retracement at the critical $1.00 value area. The $1 price level will likely determine the direction of Cardano price for the remainder of 2022.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Litecoin price is failing recovery as Whales pull back to December 2020 lows

Litecoin price was showing some signs of recovery about two weeks ago, but it failed to sustain the bullish momentum, resulting in minor corrections. While broader market cues are to be blamed for this, a lot of the credit goes to the whales, too, whose disappointing performance has impacted the altcoin.
Members of US FSC urge SEC Chair Gensler to immediately approve spot Bitcoin ETFs

The discourse surrounding the spot Bitcoin Exchange Traded Funds (ETFs) is reaching its pinnacle as key lawmakers are now stepping in to resolve the matter. The Securities and Exchange Commission’s (SEC) staunch repulsion of the ETFs has been called out by the lawmakers, urging the regulator to approve the applications.
Ripple and Coinbase lead the big fight as US crypto firms advocate for regulatory overhaul

Ripple Labs is standing shoulder-to-shoulder with US-based cryptocurrency exchange Coinbase as crypto firms in the US push for a regulatory overhaul in the country. It comes amid growing concerns that stringent and unclear regulatory structures in the US continue to drive business away from the country.
Ethereum Restaking - The next big thing after liquid staking?

Ethereum introduced unstaking this year, and the crypto market witnessed a stark shift. The Decentralized Finance (DeFi) space, in particular, observed the emergence of liquid staking protocols. With the discourse of “restaking” picking up heat, it seems like the market is getting ready for the next big thing.
Bitcoin: BTC downside likely after 20-week EMA culls bulls

Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.