ADA Coin Price Breached Crucial Support Of 0.786 Fibonacci Retracement Level

• The ADA coin indicates that the 50-and-200-day EMAs are on the verge of giving a death crossover
• The ADA/BTC pair was trading at 0.00002921 BTC, with a gain of 1%
• The 24hr trading volume of the ADA coin is $4.2 billion.

The last time when I covered an article on Cardano, the coin price was trying to sustain above the $2 mark. However, on November 16th, the price breached this support level and continued to drop lower.

Furthermore, the downtrend continued, and the bears kept knocking out the important support level. Though, last week’s price action of this coin indicates a reasonable chance of a bullish reversal as the price gave bullish engulfing candle at the 0.786 Fibonacci retracement level; however, due to the sudden sell-off, the crypto market, the coin even breached this support level today.

Concerning the EMA’s, the ADA coin price is trading below the trend defining 100 and 200 EMAs, indicating a downtrend in this coin. However, the coin chart also shows that the 50 EMA and the 200 EMA are close to a death crossover, attracting more sellers in the market.

Moreover, the RSI value of 31 indicates a bearish sentiment about the ADA coin. 

The ADA Coin In The 4-hour Time Frame Chart

The ADA coin has already provided a closing below $1.5 support in this lower time frame chart. However, the coin price is currently giving a retest to this new support, which will validate whether the breakout was genuine and provide a great short entry opportunity.

The moving average convergence/divergence indicator (BEARISH) shows that both the MACD and the signal line are moving below the neutral area(0.00), indicating bearish momentum. 

Conclusion: The overall trend for ADA coins from a technical standpoint is bearish.vAnd as mentioned, the price has recently given a breakout from another crucial support of $1.5, and if the price sustains below this level, the crypto trader could expect even more fall in this coin.

Support – $1

Resistance $1.5

DISCLAIMER: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.