- Cardano (ADA) The price sits at a level where the bulls are unable to sustain price action above the monthly S1 support at $0.60.
- ADA price could slide back into the ‘distribution’ zone between $0.47 and $0.50.
- Downside risks in the distribution zone, on the other hand, could trigger a test lower to an average of $0.383.
Cardano price After the crypto market fell with negative news from China, it changed direction by 180 degrees on Monday. Another news that triggered the risks in the crypto markets came from McDonalds. The fear in the markets increased with the announcement that the giant restaurant chain would withdraw completely from Russia. All these emerging developments weighed heavily on global growth and global risk sensitivity and directly affected the cryptocurrency market. If these effects continue, Cardano price may suffer a serious depreciation of 32%.
Cardano Price May Be Subject to 32% Adjustment
Cardano price is currently moving without respecting support and with the technical play it seemed like the price would return to a monthly S1 around $0.60 and then bounce back to $0.687. However, due to the negative news we just mentioned, investors became quite nervous and broke the monthly S1, invalidating this scenario.
The ADA price has therefore started to lag behind the entire cryptocurrency market. You can expect to see even more downside losses towards $0.47, the lower boundary of a distribution zone. With investors turning their backs on cryptocurrencies, it is expected to see a dip below $0.47 and then towards $0.38 with at least one retest on May 12.
With all these major events already happening on the first trading day of the week, the news feed could start to calm down and offer a window of opportunity for some recovery. Cardano price could climb above monthly S1 and surpass $0.687. From there, the next level of profit is set at $0.915 with the 55-day Simple Moving Average cap hanging there.
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.