The price of Cardano started a fresh decline well above $0.30. ADA is testing $0.275 and remains at risk of more downsides in the near term.
- ADA price is gaining bearish momentum below the $0.30 level against the US Dollar.
- The price is trading above $0.288 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $0.288 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could start a recovery wave if there is a close above the USD 0.30 resistance.
Cardano’s ADA price extends losses
In recent days, the price of Cardano saw another drop well above $0.308. The price traded below the $0.300 and $0.288 support levels to move into a bearish zone, similar to Bitcoin and Ethereum.
The price even dropped below $0.280 and tested the $0.275 support. A low is formed near $0.2752 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level of the downward move from the $0.3018 swing high to the $0.2752 low.
ADA price is now trading below $0.288 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance near $0.288 on the 4-hour chart of the ADA/USD pair.
On the upside, immediate resistance is near the $0.285 zone. The first major resistance forms near the $0.288 zone and the trendline. It is close to the 50% Fib retracement level of the downward move from the $0.3018 swing high to the $0.2752 low.
Source: ADAUSD at TradingView.com
The next key resistance could be at $0.300. If there is a close above the $0.300 resistance, the price could start a decent rise. In the said case, the price might rise towards the $0.320 resistance zone.
Lose more in ADA?
If the price of Cardano fails to break above the $0.288 resistance level, it could trigger another decline. Immediate support on the downside is near the $0.275 level.
The next major support is near the $0.262 level. A downside break below the $0.262 level could open the door for a sharp fresh decline towards $0.235. The next major support is near the USD 0.220 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 – $0.275, $0.262 and $0.235.
Main resistance levels – $0.285, $0.288 and $0.300.