- Cardano has its price retesting the support level at $0.805, and breaking it might welcome massive downswings.
- Volume profile indicators support a 50% plunge towards $0.381.
- A daily candle close past $1 will annul ADA’s bearish thesis.
Cardano price has seen downswings for a long time and now retest a critical support floor. This footing remains critical in avoiding massive retracements toward levels witnessed in early 2021. That comes as the broad market fall following recent upticks.
Cardano has lost approximately 74% since hitting its ATH of $3.104. For now, the alternative coin trades near $0.789. Volume profile indicator shows ADA’s traded volume thins out significantly from $0.805 to $0.381.
Therefore, a close under $0.805 will translate to bearish control. Such a move might trigger a 50% downward move from Cardano’s current price to $0.381. That way, bulls remain with the last chance to rescue Cardano from plummets.
Failure to do that might translate to a capitulation zone plunge. Though bearish, that would suggest an impending bottom for ADA price. The past four months had ADA slicing through the 50-, 100-, and 200-day SMAs. Sellers capped all upside attempts, translating to a stretched bear rally.
Nevertheless, Bitcoin improving its condition might trigger bullish actions in Cardano. A decisive close beyond the 50-day Simple Moving Average at $1 will cancel the bearish thesis. That way, the ‘ETH-Killer’ can climb towards the obstacle around $1.20. Remember, the point of control locates at this value level.
For now, ADA bulls need to keep the altcoin beyond the support at $0.805 to prevent colossal drops. Nevertheless, the alt remains vulnerable to downswings. The volume profile indicator suggests a potential 50% fall towards $0.381.
Meanwhile, the broad crypto space sees bearish reactions. The global market cap lost 4.5% overnight, hovering around $1.76 trillion at this publication. Also, Bitcoin lost roughly 5% since yesterday to change hands above the $38K mark at this writing.
Cardano would likely mimic broad market trends. The current situation supports ADA’s downward journey. Nevertheless, a 24hr candlestick close beyond $1 will cancel Cardano’s downside journey.