Cardano’s price is struggling below the $0.30 zone. ADA may start a sharp decline if it breaks the $0.2765 support zone in the near term.
- ADA price is moving below the $0.292 support against the US dollar.
- The price is trading below $0.290 and the 100 simple moving average (4 hours).
- There is a major bullish trend line formed with support near $0.2815 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could decline significantly if the bulls fail to protect the $0.2765 support zone.
Cardano’s ADA Price Faces Uphill Task
This past week, the price of Cardano attempted a new rise above the $0.285 zone. The price rose above the $0.295 resistance zone but the bears are active near the $0.30 zone.
A high was formed near $0.3015 before a fresh decline. The price dropped below the $0.285 level and tested the $0.2765 support. It is now consolidating losses below $0.292, similar to Bitcoin and Ethereum.
There is a minor recovery wave above the 50% Fib retracement level on the downward move from the $0.3013 swing high to the $0.2754 low. However, bears are active above the $0.290 level. ADA is currently trading below $0.290 and the 100 simple moving average (4 hours).
There is also a major bullish trend line forming with support near $0.2815 on the 4-hour chart of the ADA/USD pair. On the upside, immediate resistance is near the $0.288 zone and the 100 simple moving average (4 hours).
Source: ADAUSD on TradingView.com
The first major resistance is forming near the $0.292 zone or the 61.8% Fib retracement level of the downward move from the $0.3013 swing high to the $0.2754 low. The next key resistance will be $0.30. If there is a close above the $0.30 resistance, the price can start a decent rise. In the stated case, the price may rise to the $0.320 resistance zone.
More Disadvantages of the ADA?
If the price of Cardano fails to rise above the resistance level of $0.292, it may continue to decline. Immediate support on the downside is near the $0.2815 level and the trend line.
The next major support is near the $0.2765 level. A downside break below the $0.2765 level could open the doors for a sharp fresh decline to $0.255. The next major support is near the $0.232 level.
4 hours 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 currently below the 50 level.
Key Support Levels – $0.2815, $0.2765, and $0.255.
Major Resistance Levels – $0.288, $0.292, and $0.300.