Cardano (ADA) price has been trying to draw its own pattern and path, acting quite independently of the movements exhibited by the other top ten cryptocurrencies for a while. However, although it is expected to decrease by the end of February 2022, the blood loss in the ADA price continues.
Cardano (ADA) Continues to Perform Poorly
cardano price, Although it is quite close to achieving something that the top ten and top forty cryptocurrencies by market cap have failed to do, this success is actually a big loss. The ADA price is very close to losing six months in a row very soon. Cardano recently broke the record for four consecutive red/black monthly candles in January 2022 and attracted attention by achieving five consecutive red/black monthly candles. Continuing its poor performance, ADA is very close to continuing to lose for the six months in a row.
A staggering 65% of long-term investors in Cardano have suffered losses, given multiple on-chain metrics and reports confirming that ADA wallets holding between 10 and 1 million have more than doubled their holdings in the $1 value area. tremendously surprising.
An unexpected crash can occur in Cardano price at any time. From the perspective of the expanded 2021 Volume Profile, almost nothing prevents Cardano from capturing well below $1. The high-volume node below for Cardano price does not appear until $0.35. In this scenario, ADA will widen its spread from 70% below its all-time high to about 90%, essentially repeating the same percentage loss in the 2018 bear market.
In addition, one of the most epic and violent ‘bear traps’ in ADA history may be developing. Cardano hit new all-time lows on the ‘composite index’ monthly chart. At the same time, hidden bullish divergence developed between the candlestick chart and the composite index, a situation that almost no cryptocurrency has created in almost four years. Finally, the monthly candlestick itself is a rare and highly effective bullish reversal candlestick, known as the inverted hammer, known as the inverted hammer.
From the Ichimoku perspective, a drastic reversal is highly likely, with gains of over 110% due to the enormous gaps between the bodies of the monthly candlesticks and Tenkan-Sen.
Another consideration for Cardano’s recent reversal is the completion of one of the inner year’s strongest Gann cycles: the 180-day cycle. On March 1, 2022, exactly, 180 days after all-time highs.
Traders can expect a return to $2.02 on average with little or no warning. A rapid recovery of over 40% is still possible in just a few trading days.
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.