- Cardano price action is bearish despite record-breaking accumulation by whales.
- ADA daily close is the lowest of the past 390-days.
- Flash crash to $0.35 increasingly likely as buyers seemingly abandon Cardano.
Cardano price action last Monday hinted at a possible recovery and broader trend change after six consecutive months of losses. However, sellers remained in control and not only wiped out all of Cardano’s Monday gains but pushed Cardano to a new lowest close of the past 390-days.
Cardano price preps for a capitulation move of 60% to the $0.35, returning to January 2021 price levels
Cardano price is currently below all supportive Ichimoku levels and displays extensive weakness and continued bearish price action. The most crucial support level for ADA is the $0.80 value area. It represents the final high volume node in the 2021 and 2022 Volume Profiles before Cardano could trigger a flash-crash to the next high volume node at $0.35. The Volume Profile is almost empty between $0.35 and $0.80, giving bears an amazing short opportunity ahead.
However, despite the bearish conditions and apparent abandonment by bulls, Cardano price is at one of the most bullish moments in over a year from a time perspective.
One of the Fathers of Technical Analysis, W.D. Gann’s methods confuse and confound contemporary analysts, investors, and traders. The most critical factor in Gann Analysis is the focus of time. Time, Gann wrote, is the reason why markets move and trends change. The time factor affecting Cardano is one of Gann’s cycles.
Cardano is inside one of the most powerful divisions of the Cycle of the Inner Year – the 180-day cycle. Gann wrote that any instrument trending strongly for 180-days faces a very high probability of a trend reversal or strong corrective move. Consequently, March 1, 2022, is the 180th day from the all-time high of $3.09 found on September 2, 2021. Additionally, March 1, 2022, is the beginning of a New Moon lunar phase – another important time event in Gann Analysis.
ADA/USD Daily Ichimoku Kinko Hyo Chart
It can take up to fifteen days after the cyclical event for an instrument’s price action to respond. That means Cardano price could experience lower prices but still initiate a broader reversal anytime between March 1 and March 15
Combined with the extreme oversold nature of Cardano price, the new all-time low on the monthly Composite Index, and the massive gaps between the bodies of the candlesticks and the Tenkan-Sen, Cardano is poised for an explosive move higher. Therefore, the first target that bulls will test as resistance is the critical psychological $1 level. The 50% Fibonacci retracement and daily Kijun-Sen share the $1.
Ultimately, if bulls want to convert Cardano into a clear new uptrend, then Cardano price needs to complete an Ideal Bullish Ichimoku Breakout. That means Cardano needs to close at or above the $1.30 value area.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.