Cardano discount continues as buyers continue to accumulate near $1

• Cardano price is down over 25% from the February 5 swing high of $1.26
• Bears pushed ADA back into the $1.00 support range, with buyers continuing to support price.
• Whipsaws are expected as market participants watch for escalating conflict between Russia and Ukraine over the weekend.

Cardano price action, like most of the cryptocurrency market and broader risk-on assets across the globe, is under significant pressure from concerns regarding Russia and Ukraine. With the weekend already one of the most volatile periods, volatility is expected to increase.

Cardano price to experience increased volatility, significant swings expected

Cardano price could travel to some extremes over the weekend. US President Biden is scheduled to meet with his Russian counterpart on Saturday. If there is an agreement to cease saber-rattling, expect Cardano and the broader cryptocurrency market to experience a major rally. However, if the meeting proves fruitless and an actual invasion occurs, expect a significant flash crash.

In either event, the price action should be viewed as non-organic and not likely to be sustained for an overall length of time. Black Swan events are notorious for violent whipsaws in price action but almost always resolve and fall back to equilibrium. In other words, regardless of a flash-crash or significant spike higher, Cardano price will likely return to the $1.05 to $1.15 value area.

Daily Ichimoku Kinko Hyo Chart

Downside risks for Cardano price could extend as far as the 2022 low at $0.92 but could extend even lower to the 361.8% Fibonacci expansion at $0.89. However, in the event of an armed conflict, the lows could be wildly different from one exchange to the next.

Upside potential would probably be limited to the top of the Ichimoku Cloud and 50% Fibonacci expansion in the $1.50 value area.

 

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