Cardano’s price started a new decline from above $0.30. ADA tested $0.275 and remains vulnerable to several near-term downsides.
- ADA price gained bearish momentum below the $0.30 level against the US dollar.
- The price traded above $0.288 and the 100 simple moving average (4 hours).
- There is a major bearish trend line formed with resistance near $0.288 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair may start a recovery wave if there is a close above the $0.30 resistance.
Cardano’s ADA Price Extends Losses
In the last few days, the price of Cardano has seen a new decrease from 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 was formed near $0.2752 and the price is now consolidating losses. It is currently 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 currently trading below $0.288 and the 100 simple moving average (4 hours). There is also a major bearish trend line 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 is formed near the $0.288 zone and the trend line. This is near the 50% Fib retracement level of the downward move from the $0.3018 swing high to the $0.2752 low.
Source: ADAUSD on TradingView.com
The next key resistance will be $0.300. If there is a close above the $0.300 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 $0.288, it may start another decline. Immediate support on the downside 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 doors for a sharp fresh decline to $0.235. The next major support is near the $0.220 level.
Technical Signs
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 – $0.275, $0.262, and $0.235.
Major Resistance Levels – $0.285, $0.288, and $0.300.
