Cardano price started a fresh decline from the $0.40 resistance. ADA could drop further if there is a clear move below the $0.35 support.
- The ADA price is showing bearish signs and is trading above $0.35 against the US dollar.
- The price is trading below $0.388 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $0.380 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could start a decent rise if it crosses the $0.380 resistance zone.
Cardano’s ADA Price Extends Drop
Over the past week, Cardano price made a number of attempts to clear the $0.400 resistance. However, the bulls failed and the price reacted to the downside below the $0.388 support.
The price dropped below the $0.380 and $0.365 support levels. Finally, it tested the $0.355 support. A low is forming near $0.3534 and the price is now attempting a small upward correction similar to Bitcoin and Ethereum.
ADA is still trading below $0.388 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance close to $0.380 on the 4-hour chart of the ADA/USD pair. On the upside, immediate resistance is near the $0.375 zone or the 50% Fib retracement level from the recent drop from the $0.3978 swing high to the 0.3534 low.
The next major resistance forms near the $0.380 zone or trendline. It is close to the 61.8% Fib retracement level of the recent drop from the $0.3978 swing high to the 0.3534 low.
Source: ADAUSD at TradingView.com
If there is an upside break above the $0.375 and $0.380 resistance levels, the price could start a decent rise. In the said case, the price might even cross the $0.388 resistance zone. The next key resistance could be at $0.400, above which $0.42 could test.
Lose more?
If the price of Cardano fails to break above the $0.375 and $0.380 resistance levels, it could move further down. Immediate support on the downside is near the $0.355 level.
The next major support is near the USD 0.350 level. A downside break below the $0.350 level could open the door for another decline towards $0.320. The next major support is near the $0.312 level.
Technical indicators
4am 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.
Main Support Levels – $0.355, $0.350 and $0.320.
Main resistance levels – $0.375, $0.380 and $0.400.