Cardano price crashes bears into support, while bulls will book 10% gain on recovery
|- Cardano price shook markets with a steep decline on Monday at the start of the ASIA PAC session.
- ADA starts the week and fresh month at a loss of 5%.
- Expect bulls to quickly head back up and stage a breakout trade to trap bears in the process.
Cardano (ADA) price has dropped like a stone this Monday as the ASIA PAC session brought a 5% loss with it. Expect to see a turnaround near the US trading session once fresh buyers can buy into the current opportunity of Cardano at a reduction. With plenty of support, a bounce higher looks reasonable to break above $0.42 with a 10% gain in the books.
Cardano price is down but not dead
Cardano's price had a rough start to the week as price action declined 5% in the ASIA PAC session, where bears overhauled price action in ADA to the downside. The price crashed into the support area near $0.39, where a lot of elements are supporting it. Expect to see the drop to hold there, and a turnaround could take off once the US session picks up steam.
ADA is primed for a leg higher, in the process trapping bears to the upside. The monthly pivot for May at $0.41 will be the first real test to see if the rally will hold. Once that pivot is claimed by bulls, the breakout will not be far. Once ADA prints above $0.42, not only a 10% gain can be booked, but more gains will be on the horizon as the rally could set sail for $0.45.
ADA/USD 4H-chart
The threat, of course, comes with bears breaking $0.39 to the downside. The 55-day Simple Moving Average (SMA) is not far off to halt the decline near $0.38. In case the sell-off gains more power, the 200-day SMA will need to do its job and catch the falling knife by then as over 15% worth of losses are to be written off the portfolios of bulls.
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