Cardano price started a fresh decline after the USD 0.3850 resistance. ADA is consolidating above USD 0.3350 and could attempt a recovery wave.
- ADA price started a downward move below the USD 0.3550 support level.
- The price is trading below $0.350 and the 100-hour simple moving average.
- A short-term bearish trendline is forming with resistance at $0.3480 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could continue to decline if it remains below the $0.360 resistance zone.
Cardano price drops again
After testing the resistance at $0.4150, Cardano struggled to hold higher. ADA formed a short-term top and started a new decline, as did Bitcoin and Ethereum. There was a move below the USD 0.3850 and USD 0.3650 support levels.
The price even fell below $0.350 before the bulls appeared. A low was formed at $0.3360 and the price is now consolidating losses. There was a small move above the USD 0.3420 level. The price tested the 23.6% Fib retracement level of the downward move from the $0.3853 swing high to the $0.3360 low.
Cardano price is now trading below $0.360 and the 100-hourly moving average. On the upside, the price could encounter resistance near the $0.3500 zone. A short-term bearish trendline is also forming with resistance at $0.3480 on the hourly chart of the ADA/USD pair.
First resistance is near $0.360 or the 50% Fib retracement level of the downward move from the $0.3853 swing high to the $0.3360 low. The next major resistance could be at $0.3740. If there is a close above the resistance at $0.3740, the price could start a strong rally. In the said case, the price could rise towards the $0.400 region. Further gains could require a move towards $0.4150.
More disadvantages in ADA?
If Cardano price fails to rise above the USD 0.3500 resistance level, it could trigger another decline. The immediate downside support is near the USD 0.340 level.
The next major support is near the $0.3350 level. A downside break below the USD 0.3350 level could open the doors for a test of USD 0.3220. The next major support is near the $0.300 level, where the bulls could emerge.
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 – USD 0.3400 and USD 0.3350.
Major resistance levels – $0.3500 and $0.3600.