Cardano price remains weak against the increasingly risk-averse crypto market. ADA’s price action had already outstripped the market leaders, but the expectation that it would turn bullish has gradually faded. The Cardano Relative Strength Index is entering bear market conditions as Cardano price approaches four-month lows. So what levels should investors follow at this point?
Cardano price under threat of 30% drop
Cardano price action is down more than 6% today in line with the broader cryptocurrency market. While not directly related to the cryptocurrency market, news that one of China’s (and the world’s) largest real estate companies has officially defaulted has put pressure on risk assets that are already under considerable uncertainty.
The most important support level for Cardano is the $1.33 value area where the 2021 Volume Control Point and the weekly Ichimoku Cloud peak are located. Therefore, failing to protect the $1.33 zone will position Cardano at the ultimate primary support level.
At this point, Cardano’s last support line is located in the price range between $1.04 and $1.10.
If the weekly or daily candlestick closes below $1.07, Cardano price will meet all the requirements for the Ideal Bearish Ichimoku Breakout entry. In such a case, weekly support is not available in the Ichimoku Kinko Hyo system until Chikou Span tests the top of the Cloud at $0.13.
It may not be enough for buyers to hold the $1.33 level to save Cardano from a violent capitulation. Instead, buyers will need to step in and put Cardano above the weekly Tenkan-Sen at $1.81.
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.