Cardano’s price started a fresh decline below USD 0.280. ADA is struggling and key indicators point to high chances of more downsides below USD 0.252.
- The ADA price is gaining bearish momentum below the USD 0.285 level against the US dollar.
- The price is trading above USD 0.280 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near USD 0.274 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could begin a recovery wave if it closes above the USD 0.280 resistance.
Cardano’s ADA Price faces a tough call
In recent days, the price of Cardano experienced a fresh decline well above USD 0.288. The price traded below the USD 0.285 and USD 0.280 support levels and entered a bearish zone, similar to Bitcoin and Ethereum.
The price even declined below USD 0.265 and it tested the USD 0.245 support. A low is forming near USD 0.2455 and the price is now consolidating losses. There was a small increase above the 23.6% Fib retracement level from the downward move from the $0.3018 swing high to the $0.2455 low.
However, the bears are active near the USD 0.270 zone. The ADA price is now trading below USD 0.280 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance near USD 0.274 on the ADA/USD pair’s 4-hour chart.
On the upside, immediate resistance is near the USD 0.270 zone. The first major resistance forms near the $0.274 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 $0.2455 low.
Source: ADAUSD at TradingView.com
The next key resistance could be at USD 0.280. If there is a close above the USD 0.280 resistance, the price could start a decent increase. In the said case, the price could rise towards the USD 0.300 resistance zone.
Lose more?
If the price of Cardano fails to climb above the USD 0.274 resistance level, it could trigger a fresh decline. The immediate downside support is near the USD 0.252 level.
The next major support is near the USD 0.2455 level. A downside break below the USD 0.2455 level could open the doors for a sharp fresh decline towards USD 0.220. The next major support is near the USD 0.200 level.
Technical indicators
4am MACD – The MACD for ADA/USD is gaining strength in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key Support Levels – $0.252, $0.2455 and $0.220.
Key resistance levels – $0.270, $0.274 and $0.280.
