Cardano’s price started a new decline below $0.264. ADA is struggling and could accelerate lower if there is a close below the $0.250 support.
- ADA price is gaining bearish momentum below the USD 0.265 level against the US Dollar.
- The price is trading above USD 0.250 and the 100 simple moving average (4 hours).
- There was a break below a key bullish trendline with support near $0.258 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair needs to stay above the $0.250 support for another move higher in the near term.
Cardano price cuts profits
In recent days, Cardano’s price climbed higher above the $0.255 level. The price was able to overcome the USD 0.265 resistance but the upside was limited. The price traded as high as $0.2741 and recently corrected lower like Bitcoin and Ethereum.
There was a decline below the $0.265 support level. Furthermore, there was a break below a key bullish trendline with support near $0.258 on the 4-hour chart of the ADA/USD pair.
Cardano is now testing the 61.8% Fib retracement level of the upward move from the $0.2426 swing low to the $0.2741 high. However, the ADA is still above $0.250 and the 100 simple moving average (4 hours).
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.258 zone. The first major resistance is forming near the $0.265 zone. The next major resistance could be $0.274. If there is a close above the USD 0.274 resistance, the price could start a decent rise. In the mentioned case, the price could rise towards the USD 0.300 resistance zone.
More losses in ADA?
If Cardano price fails to rise above the USD 0.265 resistance level, it could continue to decline. The immediate downside support is near the USD 0.250 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 gaining 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 – $0.250, $0.242 and $0.220.
Major resistance levels – $0.265, $0.274 and $0.300.
