• Cardano price continues to collapse, hitting the lowest daily close since February 19, 2021
  • ADA is down more than 70% from its all-time high.
  • Cardano holds the single longest stretch of monthly losses out of all major cryptocurrencies.

Cardano price action has recently achieved (and developing) some historical behaviors not seen in any of the top ten market cap cryptocurrencies – or nearly the entire altcoin space. Nevertheless, a slow bleed-off of value continues, with little sign of it abating until the very end of February 2022.

Cardano price is one of the worst-performing top ten cryptocurrencies and altcoins

Cardano price action is well on its way to achieving what none of the top 10 or top 40 cryptocurrencies by market capitalization have achieved: six consecutive months of losses. Cardano recently broke its record of four consecutive red/black monthly candlesticks in January 2022 to five consecutive red/black months – and unless something dramatic changes between now and the following Monday, it will extend the losing streak to a staggering six months.

An astonishing 65% of Cardano hodlers are now in the red. This is extremely surprising given multiple on-chain metrics and reports that confirmed ADA wallets that hold between 10,00 and 1 million ADA have more than doubled their holdings in the $1 value area.

A spectacular flash-crash could occur at any moment. From the extended 2021 Volume Profile perspective, almost nothing prevents Cardano from capitulating well below the $1. The following high volume node for Cardano price doesn’t appear until $0.35. In that scenario, ADA would extend its gap from 70% below its all-time high to nearly 90% - essentially repeating the same percentage loss from the 2018 bear market.

However, one of the most epic and violent bear traps in cryptocurrency history may be developing. Cardano has hit new all-time lows in the Composite Index on the monthly chart. At the same time, hidden bullish divergence developed between the candlestick chart and the Composite Index – a condition almost no cryptocurrency has created in almost four years. Finally, the monthly candlestick itself is a rare and massively influential bullish reversal candlestick known as an inverted hammer.

From an Ichimoku perspective, a violent reversal that could generate over a 110% gain is highly probable due to the enormous gaps between the bodies of the monthly candlesticks and the Tenkan-Sen.

Another consideration for Cardano’s imminent reversal is the completion of one of the most potent Gann cycles of the inner year: the 180-day cycle. 180-days from the all-time high lands precisely on March 1, 2022.

ADA/USD Monthly Ichimoku Kinko Hyo Chart

Traders should expect a mean reversion to $2.02 to occur with little to no warning. A rapid recovery of over 40% within just a few trading days is highly likely.

 


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


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

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.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

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.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

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.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

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.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP