Last week, the cryptocurrency market went through one of the barbaric blood baths where except a few cryptocurrencies, almost every cryptocurrency had a fall of double-digit percentage.
Like many other cryptocurrencies, even Cardano bulls have been facing pressure after the May 12th crypto crash.
At the time of publication, Cardano’s ADA is trading at $0.526 with a fall of 1.99% in the last 24hrs.
Cardano To See A Further Price Crash
The way Cardano price action is performing currently, it appears that the ADA price is strongly headed towards a bearish trend. A lack of bullish confidence and rejection can be seen in Cardano’s price momentum with a bearish continuation pattern along with a repeated rejection against the Ichimoku Kinko Hyo system’s weakest level (the Tenkan-Sen).
At present, for Cardano, $0.49 range is acting as a crucial level to be watched at. If Cardano makes up to close its daily candlestick at or lower than $0.49 the price will stay beneath the current high volume mode. The volume profiles for 2022 and 2021 indicate extremely thin traded prices until $0.35, the following high volume node.
Price action behavior in the Volume Profile is analyzed by analysts and traders as follows: when the price goes above/below a high volume node, it will travel swiftly to the next high volume node, depending on how thin the volume between the two nodes is. The faster they travel, the narrower the volume. As a result, the most expected Cardano price is likely to be fast.
Bulls will need to boost Cardano price to at least a close above the Kijun-Sen — at or above $0.66 – to invalidate any additional near-term negative sentiment.