- Cardano price action is expected to decline every week.
- ADA price continues to trade at the 2022 lower boundary.
- Expect to see another leg lower, break through $0.415 and bet $0.100 on the program.
Cardano (ADA) price action could see traders bounce back a bit with a green candle in the week and at the beginning of a new month. That’s all for the good news, as it doesn’t look like ADA price can close the week higher than the previous week and therefore just continue to trade in a downtrend that squeezes traders against $0.415. Downside risk comes from the possibility that the Fed will step up its rate hike plan, triggering an even stronger dollar and adding another wide lower range to the ADA price estimate.
ADA price expected to fall 80% by November
The price of Cardano seems to be out of line and out of line with the challenge of profitable trading in the current macro environment. Inflation is still high, wages are falling and there is little money left to spend on cryptocurrencies. The first round of this cash leak caused the price of Cardano to drop below $1.00.
The price of ADA bottomed around $0.415 as the level dropped sharply in May and traders have been trying to force a bounce from this level this week. Unfortunately, this bounce is not strong enough, and with the 55-day SMA hanging above the price action as a ceiling, the price action is likely to drop in the coming weeks with a further first monthly S1 at $0.383, in line with this March low-falling knife. Based on monthly reversals in September, losses could widen to monthly S3 near $0.20, from $0.075 further, and possibly be tested by November if the current dire economic situation continues.
Daily ADA/USD chart
A strong signal for the markets would be if the price of Cardano could start the week by opening above the 55-day SMA around $0.50. Traders will jump to this level as it will act as new support nearby and provide an opportunity to rise to $0.600 in the near future. In the longer term, $0.715 could be expected, although this would mean that something significant is changing or that cryptocurrencies are completely out of the current macroeconomic environment.