Cardano’s price started a fresh decline below $0.280. ADA is struggling and key indicators suggest high chances of more downsides below $0.252.
- ADA price is gaining bearish momentum below the $0.285 level against the US dollar.
- The price is trading above $0.280 and the 100 simple moving average (4 hours).
- There is a major bearish trend line forming with resistance near $0.274 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could start a recovery wave if there is a close above the $0.280 resistance.
Cardano’s ADA Price Faces Uphill Task
In the past few days, Cardano’s price saw a fresh decline from well above $0.288. The price traded below the $0.285 and $0.280 support levels to move into a bearish zone, similar to Bitcoin and Ethereum.
The price even declined below $0.265 and tested the $0.245 support. A low is formed near $0.2455 and the price is now consolidating losses. There was a minor increase above the 23.6% Fib retracement level of the downward move from the $0.3018 swing high to the $0.2455 low.
However, the bears are active near the $0.270 zone. ADA price is now trading below $0.280 and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $0.274 on the 4-hour chart of the ADA/USD pair.
On the upside, immediate resistance is near the $0.270 zone. The first major resistance is forming near the $0.274 zone and the trend line. It is close to the 50% Fib retracement level of the downward move from the $0.3018 swing high to the $0.2455 low.
Source: ADAUSD on TradingView.com
The next key resistance might be $0.280. If there is a close above the $0.280 resistance, the price could start a decent increase. In the stated case, the price could rise toward the $0.300 resistance zone.
If Cardano’s price fails to climb above the $0.274 resistance level, it could start another decline. Immediate support on the downside is near the $0.252 level.
The next major support is near the $0.2455 level. A downside break below the $0.2455 level could open the doors for a sharp fresh decline toward $0.220. The next major support is near the $0.200 level.
4 hours MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.252, $0.2455, and $0.220.
Major Resistance Levels – $0.270, $0.274, and $0.280.
Aayush is a Senior Forex, Cryptocurrencies, and Financial Market Strategist. He specializes in market strategies and technical analysis and has spent over 15 years as a financial markets contributor and observer. He also founded an IT company and works rigorously in providing high-quality software services. Aayush possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin, and Ethereum markets. Follow him on Twitter @AayushJs.
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