- Cardano price is sitting on shaky grounds as it trades around $0.619.
- Investors can expect ADA to crash 35% to retest a stable support level at $0.397.
- A three-day candlestick close above $0.677 will invalidate the bearish thesis.
Cardano price has been on a massive downswing while all the altcoins were rallying. The recent bearish onslaught has made things worse for ADA holders but a further move to the downside is yet to come.
Cardano price fails to establish support
Cardano price has been on a 35-week downswing since its all-time high at $3.11 in September 2021. This tiresome downtrend seemed to have caught a break in March when ADA rallied 60% and set a higher high at $1.24.
However, the bears had other plans and pushed Cardano price back into a downtrend. The recent market crash has only added to ADA’s woes. As the so-called “Ethereum-killer” trades around $0.619, investors need to note that this is not the base.
The immediate stable support for Cardano price is at $0.397, which is roughly a 35% crash away from the current position. Adding credence to this downswing is the inefficiency of the price during its rally in early 2021.
Therefore, if investors are looking to buy the dip, it would be around $0.397. A crash to this level will exhaust the sellers, allowing buyers to scoop ADA at a discount.
ADA/USDT 3-day chart
Further adding credence to the bearish outlook for Cardano price is the recent decline in the number of wallets holding between 100,000 and 1,000,000 ADA tokens. This category of investors has been offloading their tokens and their numbers have dwindled from 22,807 to 21,100 since March 11.
This 7.9% drop indicates that these investors are selling their tokens and are not bullish on ADA yet.
 [07.04.55, 11 May, 2022]-637878413839620956.png)
ADA supply distribution
Regardless of the bearish outlook, a three-day candlestick close above $0.677 will reclaim a crucial level and flip it into a support level. This development alone could trigger a buying spree and invalidate the bearish thesis by flipping the $0.785 hurdle. In such a case, Cardano price could rally higher and tackle the $0.900 barrier.
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.
Recommended Content
Editors’ Picks
AI Tokens Price Prediction: Story, Virtuals Protocol rebound following sell-off after US strikes on Iran
Geopolitical tensions in the Middle East caused a liquidation havoc of over $1 billion in the cryptocurrency market over the weekend, following US President Donald Trump’s direct involvement in the conflict between Israel and Iran.
Crypto Today: Bitcoin, Ethereum, XRP flash recovery signals after rollercoaster weekend
The cryptocurrency market is gearing up for recovery following a geopolitical tension-triggered sell-off over the weekend after the United States (US) struck Iran's nuclear sites in support of Israel's campaign.
Quant Price Prediction: Award-winning payment platform eyes bullish reversal
Quant edges higher by 1% so far on Monday, after winning the Best Programmable Payment Platform at the Future of Finance Awards. The optimism surrounding Quant grows in the derivatives market, evident with the QNT Open Interest spike.
Bitcoin Price Forecast: BTC rebounds to $102,000 as MetaPlanet buys the dip, geopolitical fears linger
Bitcoin (BTC) price rebounds slightly, trading around $102,000 at the time of writing on Monday after dipping to $98,200 the previous day. Institutional investors further supported the price recovery as MetaPlanet added 1,111 BTC to its treasury reserve.
Bitcoin Weekly Forecast: The calm before the storm
Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.