Cardano price started a fresh decline below the $0.4120 support. Ethereum’s decline seems to be dragging ADA lower towards the $0.380 support.
- ADA price started a fresh decline towards the $0.450 resistance zone.
- The price is trading below $0.4120 and the 100 hourly simple moving average.
- There is a bearish trend line forming with resistance at $0.4060 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair may continue to decline and test the $0.380 support zone.
Cardano Price Shows Signs of Further Downside
After a steady rise, Cardano faced sellers near the $0.450 resistance zone. ADA formed a short-term top and started a pullback below the $0.4250 level. Recently, The decline of Ethereum dragged it further down below the $0.400 support.
A low is formed near $0.3919 and the price is consolidating losses with a bearish angle. There is also a bearish trend line forming with resistance at $0.4060 on the hourly chart of the ADA/USD pair.
Cardano price is now trading below $0.4100 and the 100 hourly simple moving average. If there is a recovery wave, the price could face resistance near the $0.4050 zone and the 50% Fib retracement level of the downward move from the $0.4211 high to $0.3919 low.
The first resistance is near $0.4150 or the 76.4% Fib retracement level of the downward move from the $0.4211 high to $0.3919 low. The next key resistance could be at $0.4220. If there is a close above the $0.4220 resistance, the price could start a strong rally. In the stated case, the price could rise towards the $0.4450 region. Any further gains may call for a move towards $0.4500.
More disadvantages to ADA?
If Cardano price fails to climb above the $0.4050 resistance level, it could continue to decline. The immediate support on the downside is near the $0.3920 level.
The next major support is near the $0.3800 level. A break below the $0.3800 level could open the doors for a test of $0.3650. The next major support is near the $0.3500 level, where bulls may 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.
Key support levels – $0.3920 and $0.3800.
Key Resistance Levels – $0.4050 and $0.4150.