ADA resumes downtrend as buyers accumulate near $1

ADA price action, like most coins in the global crypto and venture asset markets, is under significant pressure from concerns surrounding Russia and Ukraine.

Increased volatility

ADA could swing to some extreme levels over the weekend.

US President Biden is scheduled to meet with the Russian President on Saturday. If there is an agreement to end the chaos, expect ADA and the broader crypto market to see a major rally. However, if the meeting is inconclusive and an actual invasion ensues, be prepared for a major flash crash.

In either case, the price action is unlikely to last for an extended period of time. Black swan events are famous for their violent price movements, but they always return to equilibrium. In other words, ADA price is likely to return to the $1.05-$1.15 value zone regardless of the flash crash or a significant rally.

ADA/USD daily chart Ichimoku Kinko Hyo. Source: TradingView

The downside risk for Cardano price could extend to the 2022 low at $0.92, but it could also slide lower towards the 361.8% Fib extension at $0.89. In the event of an armed conflict, however, the stock markets will reach very different lows.

Upside potential will likely be limited to the top of the Ichimoku cloud and the 50% Fib extension at the $1.5 level.

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