- Cardano price turned lower after a strong rejection against the trend line on the weekly chart.
- ADA looks set to continue down its bearish path.
- The last two weeks of 2022 are expected to see a selloff risk of 35% downside.
From a purely technical perspective, Cardano (ADA) price action is set to end the last two trading weeks of 2022 with heavy losses. Many of the catalysts this past week have not been as responsive as expected and could see traders exiting their positions for a last minute Christmas rally. Central bank speakers Lagarde and Powell were quite firm in deflating hopes for a Goldilocks and soft landing scenario, which means the ADA still has some revaluation to do in the coming weeks.
ADA Price Sees Its Expectations Balloon Inflate
Cardano price did not fare well this week due to the passage of data and speakers. From a technical perspective, the bearish cycle is still far from over, as the ADA received a firm rejection on Tuesday from a test of that red descending trend line following the euphoric low US inflation print. The downside has faded, with an uptrend seen till Friday.
ADA is thus far not in a good position to weather the current market volatility, and the fact that it is again trading away from the bearish trend line is fading hopes of a breakout. Traders will start exiting their positions created after the Christmas rally. This will trigger more selling in the next week and will see ADA revalue near $0.194 in search of support.
ADA/USD Weekly Chart
However, Cardano price has been trading along that descending trend line for most of 2022. This means that there has been interest throughout the year to join or participate in when a breakout trade occurs. Dip buying by traders is expected to limit the fall. This should bring ADA back around $0.300 very quickly, as there is no massive selloff.
