Here we can see that Cardano is breaking out of 364 days! range and starts losing 1$ support level on the daily timeframe. Give it a few more closes below and things can get really ugly.
Bearish case: Now we almost have the first daily close below 1$ level in 364 days, which indicates that bullish trend might change. The problem is that there are no strong support levels below 1$ because the pump before was very fast and unstoppable forming a huge "price inefficiency" gap (price didn't trade enough at those levels). So the first strong support is 0.4$, which is almost 60% below current price. I'm not saying we will get there straight line, sure there will be bounces, but levels of support are more like psychological (0.75$, 0.5$ etc.). So keep that in mind.
Bullish case would be Sharp reversal above 1$, it should be very fast, anything slow is not ok, because price starts forming bearish momentum which tends to accelerate after breakouts of critical levels (cascade liquidations, price inefficiency gap fills).
Manage your risk, like this idea, wish you all the best!
Bearish case: Now we almost have the first daily close below 1$ level in 364 days, which indicates that bullish trend might change. The problem is that there are no strong support levels below 1$ because the pump before was very fast and unstoppable forming a huge "price inefficiency" gap (price didn't trade enough at those levels). So the first strong support is 0.4$, which is almost 60% below current price. I'm not saying we will get there straight line, sure there will be bounces, but levels of support are more like psychological (0.75$, 0.5$ etc.). So keep that in mind.
Bullish case would be Sharp reversal above 1$, it should be very fast, anything slow is not ok, because price starts forming bearish momentum which tends to accelerate after breakouts of critical levels (cascade liquidations, price inefficiency gap fills).
Manage your risk, like this idea, wish you all the best!