Cardano price action, like most of the cryptocurrency market and other risky assets around the world, is under pressure from tensions between Russia and Ukraine. With the weekend, which is one of the most active periods, volatility can be expected to increase.
Cardano price can go to some extremes over the weekend. US President Biden will meet with his Russian counterpart on Saturday. If a deal comes to the fore to stop the tension, Cardano and the broader cryptocurrency market can be expected to experience a massive rally. However, if the meeting is inconclusive and an invasion takes place, as some have claimed, a significant crash could occur.
In either case, the price action will not be organic and it should be seen that the movement is unlikely to be sustained over an overall period of time. Today, situations that are almost unlikely to happen, such as the tension between Russia and Ukraine, and the great effects of these events are referred to as the Black Swan Incident. The Black Swan effect also affects financial markets. However, Black Swan events are notorious for violent movements in price action but almost always return to equilibrium. In other words, regardless of a sudden drop or a significant increase, Cardano price will likely return to the value area of $1.05 to $1.15.
Downside risks for Cardano price may extend to the lows of 2022 at the $0.92 levels, after which it could act as support in the case of a drop of $0.89, which corresponds to a 361.8 Fibonacci expansion. However, in the event of a gunfight, the dips can be quite different from one stock market to the next.
The upside potential will likely be limited to the top of the Ichimoku Cloud and 50% Fibonacci expansion in the $1.50 value area.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.