Cardano price failed to surpass $0.40 and started falling again. ADA is now trading below $0.3850 and could extend losses in the near term.
- The ADA price started a new decline and traded below $0.3880.
- The price is trading below $0.3850 and the 100-hour simple moving average.
- There was a break below a key bullish trendline with support at $0.3845 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could extend losses and test the USD 0.370 support zone.
Cardano price drops again
In recent days, Cardano attempted a recovery wave above the $0.3650 zone, just like Bitcoin and Ethereum. However, ADA failed to break the $0.40 resistance zone. A high was formed at $0.3967 and the price started a new decline.
There was a move below the USD 0.3880 and USD 0.3865 support levels. The price fell below the 23.6% Fib retracement level of the upward move from the $0.3620 swing low to the $0.3967 high. Moreover, there was a break below a key bullish trendline with support at $0.3845 on the hourly chart of the ADA/USD pair.
The ADA price is now trading below $0.3850 and the 100-hour moving average. If another upward move occurs, the price may encounter resistance near the $0.3850 zone.
The first resistance is near $0.3880. The next major resistance could be at $0.40. If there is a close above the USD 0.40 resistance, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.4150 region. Further gains could require a move towards $0.4250.
More disadvantages in ADA?
If Cardano price fails to rise above the USD 0.3850 resistance level, it could continue to decline. Immediate support on the downside is near the $0.3795 level or the 50% Fib retracement level of the upward move from the $0.3620 swing low to the $0.3967 high.
The next major support is near the $0.370 level. A downside break below the USD 0.370 level could open the doors for a test of USD 0.350. The next major support is near the $0.3350 level.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – $0.3790, $0.370 and $0.350.
Major resistance levels – $0.3880 and $0.400.
