Cardano’s price began a new decline under the support of $0.4120. Ethereum’s drop seems to be dragging ADA towards the $0.380 level.
- ADA started a new decline after the resistance level of $0.450.
- Price is below the simple 100-hour moving average and $0.4120.
- The hourly chart shows a bearish key trend line with resistance near $0.4060. (Data source: Kraken).
- It is possible that the pair will continue to drop and may test support at $0.380.
Cardano price shows signs of more downsides
Cardano has been steadily increasing in value, but sellers are now nearing the bottom. $0.450 resistance zone. ADA has formed a top on a short term and is now pulling back below $0.4250. Recently, Ethereum’s decline It was dragged further below the support of $0.400.
There is a low near $0.3919, and price consolidation is taking place with a downward angle. On the hourly chart for the ADA/USD, there is a major bearish trendline forming at resistance of $0.4060.
Cardano is currently trading under $0.4100, and below the 100 hourly moving average. The price may face resistance around the $0.4050 area and 50% Fib level for the decline from the $0.4211 high swing to the $3919 low if there’s a recovery.
First resistance will be near the Fib level of 76.4% retracement from the swing high $0.4211 to the low $0.3919. The next major resistance level could be $0.4220. A close above resistance $0.4220 could trigger a powerful rally. If the case is stated, then the price may rise towards the region of $0.4450. For any further gains the move could be towards $0.4500.
What are the other downsides of ADA?
Cardano could move lower if it fails to rise above the resistance level of $0.4050. Support on the downside near $0.3920 is the immediate level of support.
The next important support level is around $0.3800. If the level of $0.3800 is breached, it could lead to a move towards $0.3650. Next major support could be near $0.3500 where the bulls are likely to emerge.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.3920 and $0.3800.
Major Resistance Levels – $0.4050 and $0.4150.
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Source: www.newsbtc.com
