- Cardano price retests the $0.805 support level, a breakdown of which could lead to a steep crash.
- A 50% crash to $0.381 is plausible based on the volume profile indicator
- A daily candlestick close above $1 will invalidate the bearish thesis for ADA.
Cardano price has been on a downtrend for the longest time and is currently retesting a vital support level. This foothold is crucial in preventing a massive correction to a level last seen in early 2021.
Cardano price heads south
Cardano price has crashed roughly 74% from its all-time high at $3.104 and is currently trading around $0.789. Based on the volume profile indicator, the volume traded for ADA thins out considerably after $0.805 up to $0.381.
Hence, a decisive close below $0.805 will give bears the control. Such a development would lead to a 50% crash from the current position to $0.381. Therefore, bulls have one last chance to make their efforts count.
Failing to do so could lead to a capitulation level crash. While bearish, it would signal that a bottom is in for Cardano price.
ADA/USDT 3-day chart
Cardano price has sliced through the 50-day, 100-day and 200-day Simple Moving Averages (SMAs) in the last four months or so. Any attempts to move higher were capped, leading to an extended bear rally.
However, if Bitcoin’s situation improves, there is a good chance Cardano price will see some bullish reaction as well. If ADA produces a decisive close above the 50-day SMA at $1, it will invalidate the bearish thesis.
In this case, the so-called “Ethereum killer” might make a run for the next crucial hurdle at $1.20, where the current volume point of control is present.
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