Downtrend Far From Over, $0.22 Still In Play
Cardano’s price started a fresh decline after it failed to surpass $0.32. ADA remains at a risk of more losses below $0.25 and $0.245 in the near term.
- ADA price is gaining bearish momentum below the $0.280 support against the US dollar.
- The price is trading below $0.280 and the 100 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $0.2560 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
- The pair could continue to move down below the $0.245 support zone.
Cardano (ADA) Price Could Dive Further
In the past few days, cardano’s price saw a steady decline from the $0.320 resistance zone. The bears were able to push the price below the $0.30 and $0.280 support levels.
The decline gained pace below the $0.265 level and the 100 simple moving average (4-hours). ADA price even spiked below the $0.250 support zone and traded as low as $0.2481. It is now showing a lot of bearish signs near the $0.250 zone, unlike bitcoin and ethereum.
It is trading well below $0.280 and the 100 simple moving average (4-hours). On the upside, an immediate resistance is near the $0.255 zone. There is also a key bearish trend line forming with resistance near $0.2560 on the 4-hours chart of the ADA/USD pair.
The first major resistance is forming near the $0.264 zone. It is near the 23.6% Fib retracement level of the downward move from the $0.3188 swing high to $0.2481 low.
Source: ADAUSD on TradingView.com
The main resistance is now forming near the $0.2840 level. It coincides with the 50% Fib retracement level of the downward move from the $0.3188 swing high to $0.2481 low. If there is an upside break above the $0.280 and $0.284 resistance levels, the price could start a strong increase. In the stated case, the price could rise steadily towards the $0.32 level.
If cardano’s price fails to recover above the $0.255 and $0.264 resistance levels, it could continue to move down. An immediate support on the downside is near the $0.248 level.
The next major support is near the $0.245 level. A downside break below the $0.245 level could open the doors for a fresh decline towards $0.220 in the coming days. The next major support is near the $0.200 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 now below the 50 level.
Major Support Levels – $0.245, $0.220 and $0.200.
Major Resistance Levels – $0.255, $0.264 and $0.284.