The price of Cardano is falling from the $0.30 zone. ADA could drop further if it breaks the $0.280 support zone in the near term.
- The ADA price is down from the $0.302 zone against the US Dollar.
- The price is trading below $0.290 and the 100 simple moving average (4 hours).
- There was a break below a major bullish trendline with support near $0.2960 on the ADA/USD pair’s 4-hour chart (data source from Kraken).
- The pair could slide further towards the $0.264 support zone.
Cardano’s ADA Price Corrects Gains
This past week, Cardano price started a decent recovery wave from the $0.264 support zone. The bulls managed to push the price above the $0.280 and $0.295 resistance levels.
It even spiked above the $0.300 resistance. A high is formed near $0.3013 and the price is now correcting gains similar to Bitcoin and Ethereum. There was movement below the 50% Fib retracement level of the upward move from the $0.2675 swing low to the $0.3013 high.
In addition, there was a break below a key bullish trendline with support near $0.2960 on the ADA/USD pair’s 4-hour chart. The price is now trading below $0.290 and the 100 simple moving average (4 hours).
The price is now holding the $0.280 support. It is close to the 61.8% Fib retracement level of the upward move from the $0.2675 swing low to the $0.3013 high. On the upside, immediate resistance is near the $0.285 zone and the 100 simple moving average (4 hours).
Source: ADAUSD at TradingView.com
The first major resistance forms near the $0.292 zone. The next key resistance could be at $0.30. If there is an upside break above the $0.300 and $0.305 resistance levels, the price could start a decent rise. In the said case, the price might even cross the $0.320 resistance zone.
Lose more in ADA?
If the price of Cardano fails to break above the $0.285 resistance level, it could drop further. Immediate support on the downside is near the $0.280 level.
The next major support is near the $0.275 level. A downside break below the $0.275 level could open the door for another drop towards $0.262. The next major support is near the USD 0.250 level.
Technical indicators
4am 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.
Main Support Levels – $0.280, $0.275 and $0.262.
Key resistance levels – $0.285, $0.295 and $0.305.