Following the hopes raised by a sudden increase last Wednesday, the Cardano (ADA) has unscrewed, in the last five days, suffering a loss of 26% of its value .

Update on the situation

The price of Cardano has tumbled in recent days until it breaks below its historical support zone (0.78 USD). Despite the occurrence of a jolt during the second half of March (+55%), the ADA has continued its downward trend since last fall. In weekly , the cryptocurrency led by Ethereum co-founder Charles Hoskinson begins its ninth week in the red.

According to various indicators, Cardano could be on the cusp of one of its biggest falls in two years . First, its break below the $0.78 level represents a breakout of the 61.8% Fibonacci retracement level. Below this level, the ADA could experience a free fall to its next support at $0.35 and therefore suffer a total loss of 60%. It should be noted, moreover, that the more the price of the cryptocurrency stagnates below $0.78, the more this scenario could be confirmed.

Secondly, the Ichimoku indicator (which combines price projection, time projection and wave analysis) provides information on the imminence of a clear bearish breakout on daily .

Finally, following an increase in volume observed at the end of March, we are now witnessing the end of a “high-volume node” (HVN). The HVNs represent volume profiles, which, occurring after consolidation zones, testify to a price arriving in the “fair value” zone ( found value ).

The concordance of these three observations therefore suggests an imminent fall to 0.50 or even 0.35 dollars in the worst scenario.

Is it a good time to buy ADA?

Considering all of this, Cardano could show a favorable buy value very soon . If it is therefore tempting to position oneself, can we expect an upturn in the near future?

To this question, Ichimoku gives favorable answers. On May 14, there will indeed be a Kumo Twist which could illustrate a trend reversal. Moreover, the 180-day Gann cycle is still in progress, which confirms that the sudden occurrence of a bullish inflection can still take place. A bullish close above $1.05 would be a favorable signal in this direction.

Beyond this level, ADA could hit its second most important HVN around $1.30 (which is also its 38.2% Fibonacci threshold).

Finally, let’s not forget that the network is on the eve of the important and highly anticipated Hydra update. 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 boost the price of the cryptocurrency to the level of 15 dollars.

It should be clarified that if you want to buy Cardano, you must do so on a reliable platform such as eToro .

Nothing in this article constitutes investment advice. Remember to do your own research before investing.

5/5 - (1 vote)

Tagged in:

About the Author

SAKHRI Mohamed

Founder & Editor

Passionate about the web, new technologies and IT, I share on easy-tutorials.com tutorials, tips, advice, online tools and software for Windows, Mac and Linux.

View All Articles