Cardano’s price started a major decline after it broke the key $0.4200 support. ADA will likely continue its downward trend if it doesn’t settle below the $0.50 pivot point.
- The ADA price has shown a lot bearish signals, below the $0.420 support compared to the US dollar.
- It is trading at $0.400, which is well below the simple moving average of 100 (4-hours).
- On the 4-hour chart for the ADA/USD pair, there are two trend lines that form with resistance at $0.3700 or $0.3880 (data source Kraken).
- This could allow the pair to continue falling below the $0.3500 support area.
Cardano, ADA: Price signals bearish wave
In the past few days, cardano’s price saw a steady decline from well above the $0.5000 level. The key support levels of $0.450 and 0.420 were broken by the bears, which allowed the price to fall below them.
This decline was slower than the $0.400 and 100 simple moving averages (4-hours). The $0.3500 price level was the lowest and then the price began a slight upward movement, much like bitcoin or ethereum. The ADA price climbed to $0.3620 and $0.3700.
A move was seen above the 23.6% Fib level of the decline from $0.4265 swing highs to $0.3500 bottoms. The price settled at $0.3800 after it failed to climb higher.
The $0.3700 area is the immediate resistance. On the 4-hour chart of the ADA/USD pair, there are two bearish trendlines that form with resistance at $0.3700 or $0.3880. It is located near $0.3880, the first major resistance.
Source: ADAUSD at TradingView.com
A 50% Fib Retracement level is near $0.3880. This represents the decline from $0.4265 swing low to $0.3500 high. The $0.4080 resistance level is currently being formed, as well as the simple moving average 100 (4-hours). A strong rise could be possible if the upside breaks above the $0.408 resistance level and the $0.420 resistance level. If the previous scenario is true, then the price could continue rising towards $0.50.
Are You Ready for More?
If cardano’s price fails to recover above the $0.3880 and $0.400 resistance levels, it could continue to move down. Support for cardano’s downside can be found near the $0.360 mark.
Main support lies near the $0.350 mark. A negative break below the $0.350 mark could trigger a further decline to $0.320. Next major support will be near $0.300.
Technical indicators
4-hours MACD – The MACD for ADA/USD is slowly losing momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.360, $0.350 and $0.300.
Major Resistance Levels – $0.3700, $0.388 and $0.408.
