Cardano price could fall more than 40% if ADA support fails

• Cardano price is sitting right on top of a final support structure.
• A real risk of a greater than 40% drop is now possible.
• Upside potential exists but requires significant bullish participation.

Cardano price is facing a major collapse at the $0.76 value area. From Fibonacci, Ichimoku, and Volume Profile perspectives, ADA could be on the path to one of its biggest drops in two years.

Cardano price at risk of another flash crash to sub $0.50 price levels

Cardano price is sitting right on top of its final, primary support structure. The $0.76 level represents the 61.8% Fibonacci retracement and the upper range of the current 2022 low. It is also the end of a high-volume node in the 2021 Volume Profile.

Below $0.76 is price discovery until the next high node and 2021 Volume Point of control in the $0.35 value area. Any sustained period of time spent below $0.76 increases the likelihood of a major flash crash for Cardano price.

From an Ichimoku perspective, Cardano price is in a clear bearish breakdown on the daily chart. However, a Kumo Twist occurs on May 14, so any downtrend or continued sideways trade may end around that date. In addition, the 180-day Gann Cycle of the Inner Year is also still in play, indicating a swift change in direction can still occur.

If Cardano bulls want a clear display of a return to bullish price action, then they’ll need to push for an Ideal Bullish Ichimoku Breakout. For that to occur, Cardano price needs a daily close at or above $1.05.

ADA/USD Daily Ichimoku Kinko Hyo Chart

The road to retest the all-time Cardano price highs becomes increasingly easier above $1.05 as the Volume Profile thins out considerably. However, rejection should be expected at $1.30, where the second-largest high volume node from 2021 and the 38.2% Fibonacci retracement exist.

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