Following the hopes raised by a sudden surge last Wednesday, the Cardano (ADA) has unscrewed, over the past five days, cash loss of 26% of its value.
The price of Cardano has fallen in the last few days until it is gone below its historic support zone ($ 0.78). Despite a jolt occurring in the second half of March (+ 55%), the ADA has continued its downward trend since last fall. I weeklythe cryptocurrency led by Ethereum co – founder Charles Hoskinson, entering its ninth week in the red.
According to various indicators, Cardano may be on the edge with one of his biggest drop in two years. First, breaking below the $ 0.78 level is equivalent to breaking out at the 61.8% Fibonacci level. Below this level, the ADA could fall free to its next support at $ 0.35 and thus suffer a total loss of 60%. It should also be noted that the more the price of the cryptocurrency slows down by $ 0.78, the more this scenario can be confirmed.
Second, the indicator Ichimoku (combining price forecast, time projection and wave analysis) information on finding a clear bearish breakout in daily.
Finally, following an increase in observations at the end of March, we are now ending up on a “high volume node” (HVN). HVNs are volume profiles, which, after consolidation zones, show a price entering the “fair value” zone (found value).
The coherence of these three observations thus suggests upcoming drop to 0.50 or even 0.35 dollars in the worst case.
Is it a good time to buy ADA?
Taking all this into account, Cardano could show up very soon value favorable to the purchase. If so, it’s temporal to position itself, can we expect change in the near future?
To this question, Ichimoku gives favorable answers. On May 14th indeed a Twist Kumo which may indicate a reversal of a trend. Moreover, a Gann cycle in 180 days is still ongoing, which confirms that sudden occurrence of bullish inflection still possible. A bullish signal above $ 1.05 would be a favorable signal in this direction.
Above this level, ADA could reach its second most important HVN at around $ 1.30 (i.e. its 38.2% Fibonacci threshold).
Finally, let ‘s not forget that the network on the eve of the update is important and much anticipated by Hydra. If this goes as planned, Cardano will be able to process up to 1 million transactions per second. According to many observers, this event could increase the price of the cryptocurrency to the level of 15 dollars.
It should be clarified, if you want to buy Cardano, you need to go for a reliable platform like eToro.
Investment advice is nothing in this article. Remember to do your own research before investing.