Cardano (ADA) Price Dives 6% But This Key Support Is The Key
Cardano’s price started a fresh decline after it failed to surpass $0.40. ADA could extend its decline towards the key $0.335 support zone in the near term. ADA price is gaining bearish momentum below the...
Cardano’s price started a fresh decline after it failed to surpass $0.40. ADA could extend its decline towards the key $0.335 support zone in the near term.
- ADA price is gaining bearish momentum below the $0.380 support against the US dollar.
- The price is trading below $0.380 and the 100 simple moving average (4-hours).
- There was a break below a major bullish trend line with support near $0.3850 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
- The pair could continue to move down towards the $0.335 support zone.
Cardano’s ADA Price Starts Downside Correction
In the past few days, cardano’s price saw a steady increase above the $0.35 resistance zone. The price climbed above the $0.38 and $0.388 resistance levels.
The price even spiked above the $0.40 resistance before the bears appeared. A high was formed near $0.413 before the price started a downside correction, similar to bitcoin and ethereum. There was a break below a major bullish trend line with support near $0.3850 on the 4-hours chart of the ADA/USD pair.
Cardano price is now trading below $0.380 and the 100 simple moving average (4-hours). A low is formed near $0.354 and the price is showing bearish signs.
On the upside, an immediate resistance is near the $0.365 zone. It is near the 23.6% Fib retracement level of the recent decline from the $0.3995 swing high to $0.3543 low. The first major resistance is forming near the $0.376 zone.
The main resistance is now forming near the $0.3880 level and the 100 simple moving average (4-hours). It coincides with the 76.4% Fib retracement level of the recent decline from the $0.3995 swing high to $0.3543 low.
Source: ADAUSD on TradingView.com
If there is an upside break above the $0.380 and $0.384 resistance levels, the price could start a strong increase. In the stated case, the price could rise steadily towards the $0.42 level.
More Losses in ADA?
If cardano’s price fails to recover above the $0.376 and $0.380 resistance levels, it could continue to move down. An immediate support on the downside is near the $0.350 level.
The next major support is near the $0.335 level. A downside break below the $0.335 level could open the doors for a fresh decline towards $0.320 in the coming days. The next major support is near the $0.300 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 – $0.350, $0.335 and $0.320.
Major Resistance Levels – $0.376, $0.380 and $0.400.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.
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