ADA Price Plunges 5%, Can Buyers Save The Key $0.275 Support?
Cardano’s price started a fresh decline from well above $0.30. ADA is testing $0.275 and remains at risk of more downsides in the near term. ADA price is gaining bearish momentum below the $0.30 level...
Cardano’s price started a fresh decline from well above $0.30. ADA is testing $0.275 and remains at risk of more downsides in the near term.
- ADA price is gaining bearish momentum below the $0.30 level against the US dollar.
- The price is trading above $0.288 and the 100 simple moving average (4 hours).
- There is a major bearish trend line forming with resistance near $0.288 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 $0.30 resistance.
Cardano’s ADA Price Extends Losses
In the past few days, Cardano’s price saw a fresh decline from well above $0.308. The price traded below the $0.300 and $0.288 support levels to move into a bearish zone, similar to Bitcoin and Ethereum.
The price even declined below $0.280 and tested the $0.275 support. A low is formed near $0.2752 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level of the downward move from the $0.3018 swing high to the $0.2752 low.
ADA price is now trading below $0.288 and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $0.288 on the 4-hour chart of the ADA/USD pair.
On the upside, immediate resistance is near the $0.285 zone. The first major resistance is forming near the $0.288 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 $0.2752 low.
Source: ADAUSD on TradingView.com
The next key resistance might be $0.300. If there is a close above the $0.300 resistance, the price could start a decent increase. In the stated case, the price could rise toward the $0.320 resistance zone.
More Losses in ADA?
If Cardano’s price fails to climb above the $0.288 resistance level, it could start another decline. Immediate support on the downside is near the $0.275 level.
The next major support is near the $0.262 level. A downside break below the $0.262 level could open the doors for a sharp fresh decline toward $0.235. The next major support is near the $0.220 level.
Technical Indicators
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 – $0.275, $0.262, and $0.235.
Major Resistance Levels – $0.285, $0.288, and $0.300.
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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