The beginning of the year 2022 was supposed to be pretty bullish as after the stagnant trend throughout December, January was expected to be thriving. The asset was pretty bullish during the first couple of days, yet continued with the same bearish trend. During every dip, the ADA price sustained strong above the support levels around $1.2 and flipped each time it visited.
Yet the current situation may be a little distinct as the Bitcoin prices are not appearing to get stabilized and hence it may deeply impact the entire crypto space. And therefore the Cardano price may also fall into a similar trap and eventually get drained off with a notable margin. No doubt the asset is attempting very hard to reverse the trend or at least sustain above the support levels, all the efforts appear to go in vain shortly.
Cardano inches closer to major price collapse
Cardano price since it smashed the highs above $3 is following a constant downtrend and found its strong support around $1.2
Every time the asset visited these levels, it tends to flip and recover some of the losses faced
The rally ever since manifested a fake-out above $1.5 in the last few days of December 2021, it got pretty much weakened and anaemic
Now when the coin is very weak and is back at the same support levels, a breakdown is pretty much possible.
The drop may drag the price below $1 and this is when the buyers may get the last chance to grab the deal at the discounted price. Therefore uplighting the price towards the strong resistance around $1.4.
While the asset is hopeful of flipping the support level, yet the technicals and the charts suggest a severe breakdown. However, the break-down may be just a matter of time as very soon, the Cardano(ADA) price may get back above these levels, gearing up huge bullish momentum.