Cardano price could drop over 40% if ADA support fails
- Cardano’s price is sitting just above a final support structure.
- A real risk of a decline of more than 40% is now possible.
- Upside potential exists but requires significant upside participation.
Cardano price is facing a major collapse in the $0.76 value zone. From the perspective of Fibonacci, Ichimoku and Volume Profile, ADA could be on the way to one of its biggest declines in two years.
Cardano price risks another flash crash at price levels below $0.50
Cardano price is hovering just above its final major support structure. The $0.76 level represents the 61.8% Fibonacci retracement and the upper range of the current 2022 low. It is also the end of a high volume node in the 2021 volume profile.
Below $0.76, the price is uncovered until the next high node and the 2021 volume control point in the $0.35 value zone. Any extended period of time spent below $0.76 increases the likelihood of a major flash crash for Cardano price.
From Ichimoku’s perspective, Cardano’s price is in a clear bearish breakdown on the daily chart. However, a Kumo Twist occurs on May 14, so any downtrend or continued sideways trade may end around that date. Additionally, the 180-day Gann cycle of the inner year is also still in play, indicating that a rapid change in direction may still occur.
If Cardano bulls want a clear display of a return to bullish price action, then they will need to push for an ideal bullish breakout of Ichimoku. For this to happen, Cardano price needs a daily close at or above $1.05.
Daily chart Ichimoku Kinko Hyo ADA/USD
The road to retest Cardano’s all-time high prices becomes easier and easier above $1.05 as the volume profile thins out considerably. However, expect a rejection at $1.30, where the second largest high volume node of 2021 and the 38.2% Fibonacci retracement exist.