Cardano’s price started a new decline below $0.250. ADA is testing key support at $0.2450 and could trigger a recovery wave.
- The ADA price started a fresh decline below the USD 0.255 and USD 0.250 levels against the US dollar.
- The price is trading below $0.250 and the 100 simple moving average (4 hours).
- A major descending channel is forming with resistance near $0.2480 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair needs to remain above the $0.2420 support for another move higher in the near term.
Cardano’s ADA award revisits support
After a steady rise, Cardano failed to break the $0.2650 resistance zone. The price formed a short-term top at $0.2668 and recently started a new decline, just like Bitcoin and Ethereum.
There was a decline below the $0.255 support level. Moreover, there was a break below a key bullish trendline with support near $0.259 on the 4-hour chart of the ADA/USD pair. The pair even fell below the $0.250 support and the 100 simple moving average (4 hours).
A low is formed near USD 0.2450 and the price is now consolidating losses. Cardano is now trading below $0.250 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.248 zone.
A major descending channel is also forming with resistance near $0.2480 on the 4-hour chart of the ADA/USD pair. First resistance is near $0.250 or the 23.6% Fib retracement level of the downward move from the $0.2668 swing high to the $0.2450 low.
Source: ADAUSD on TradingView.com
The next major resistance could be $0.2560 and the 50% Fib retracement level of the downward move from the $0.2668 swing high to the $0.2450 low. If there is a close above the USD 0.256 resistance, the price could start a decent rise. In the mentioned case, the price could rise towards the USD 0.285 resistance zone.
More losses in ADA?
If Cardano price fails to rise above the USD 0.250 resistance level, it could continue to decline. The immediate downside support is near the USD 0.245 level.
The next major support is near the USD 0.242 level. A downward break below the USD 0.242 level could open the doors for a sharp new decline towards USD 0.220. The next major support is near the $0.200 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – $0.245, $0.242 and $0.220.
Major resistance levels – $0.250, $0.255 and $0.285.