HomeAltcoin NewsCardano (ADA) Approaching Crucial Support, Decision Time For Buyers

Cardano (ADA) Approaching Crucial Support, Decision Time For Buyers

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  • ADA price failed to gain momentum above the $0.0460 resistance and declined against the US Dollar.
  • There is a crucial bullish trend line in place with support at $0.0420 on the 4-hours chart (data feed via Kraken).
  • The price must stay above the $0.0420 support to climb higher once again in the near term.

Cardano price is struggling to hold gains against the US Dollar and Bitcoin. ADA remains at a risk of more losses towards the $0.0410 and $0.0400 levels in the coming sessions.

Cardano Price Analysis

After trading as low as $0.0391, cardano price started a decent upward move against the US Dollar. The ADA/USD pair traded above the $0.0400 and $0.0420 resistance levels. The price even broke the $0.0440 resistance and the 55 simple moving average (4-hours). Besides, there was a break above the 23.6% Fibonacci retracement level of the last slide from the $0.0545 high to $0.0390 swing low. However, the recovery was capped by the $0.0460 and $0.0465 resistance levels.

More importantly, the price even failed to test the 50% Fibonacci retracement level of the last slide from the $0.0545 high to $0.0390 swing low. As a result, there was a downside reaction below the $0.0450 support. Sellers pushed the price below the $0.0435 level and the 55 simple moving average (4-hours). On the downside, there are a few key supports near the $0.0420 level. Besides, there is a crucial bullish trend line in place with support at $0.0420 on the 4-hours chart of ADA/USD. Therefore, a downside break below the trend line could open the doors for more losses towards the $0.0400 support.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is clearly struggling to hold key supports above $0.0420. If it declines sharply below $0.0420, there is even a risk of more losses below $0.0400. On the other hand, an initial resistance is at $0.0440. Having said that, a close above $0.0460 is needed for a decent upward move towards $0.0500.

Technical Indicators

4-hours MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.

4-hours RSI – The RSI for ADA/USD is now well below the 50 level, with a bearish angle.

Key Support Level – $0.0420

Key Resistance Level – $0.0460

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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