Cardano (ADA) Price Revisits Key Support, Can Bulls Save The Day?
Cardano’s price started a fresh decline from the $0.42 resistance. ADA could decline further if it fails to stay above the $0.348 support zone. ADA price is struggling and trading near the $0.35 support zone...
Cardano’s price started a fresh decline from the $0.42 resistance. ADA could decline further if it fails to stay above the $0.348 support zone.
- ADA price is struggling and trading near the $0.35 support zone against the US dollar.
- The price is trading below $0.370 and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $0.370 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
- The pair could continue to decline if there is a downside break below the $0.348 support.
Cardano’s ADA Price Climbs Above Hurdle
After struggling to gain pace above the $0.42 resistance, cardano’s price started a fresh decline. The price declined below the $0.40 and $0.38 support levels to move into a bearish zone, unlike bitcoin and ethereum.
The decline gained pace below the $0.35 level and the 100 simple moving average (4-hours). Finally, the bulls took a stand near the key $0.35 support zone. A low is formed near $0.3489 and the price is now consolidating losses. ADA price is trading below $0.370 and the 100 simple moving average (4-hours).
On the upside, an immediate resistance is near the $0.3660 zone. It is near the 23.6% Fib retracement level of the main decline from the $0.4213 swing high to $0.3489 low.
The next major resistance is forming near the $0.370 zone. There is also a major bearish trend line forming with resistance near $0.370 on the 4-hours chart of the ADA/USD pair. If there is an upside break above the $0.370 and $0.372 resistance levels, the price could start a fresh increase.
Source: ADAUSD on TradingView.com
In the stated case, the price could rise steadily towards the $0.385 level or the 50% Fib retracement level of the main decline from the $0.4213 swing high to $0.3489 low. The next major hurdle is near the $0.40 zone.
Downside Break?
If cardano’s price fails to climb above the $0.366 and $0.370 resistance levels, it could start a fresh decline. An immediate support on the downside is near the $0.350 level.
The next major support is near the $0.348 level. A downside break below the $0.348 level could open the doors for a fresh decline towards $0.32. The next major support is near the $0.30 level.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is losing 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, $0.348 and $0.32.
Major Resistance Levels – $0.366, $0.37 and $0.385.
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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