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HomeAltcoin NewsCardano (ADA) Price Analysis: Bearish Continuation Likely Below $0.055

Cardano (ADA) Price Analysis: Bearish Continuation Likely Below $0.055

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  • ADA price started a fresh decline after it failed to break the $0.0650 resistance against the US Dollar.
  • The price broke the $0.0605 support level to move into a bearish zone.
  • There is a key bearish trend line forming with resistance near $0.0602 on the 4-hours chart (data feed via Kraken).
  • The price could correct higher, but upsides are likely to remain capped near $0.0600.

Cardano price is gaining bearish momentum against the US Dollar and bitcoin. ADA price remains at a risk of more losses below $0.0540 and $0.0505 in the near term.

Cardano Price Analysis

After a strong decline, cardano price found support near the $0.0500 level against the US Dollar. The ADA/USD pair started a decent recovery above the $0.0580 and $0.0600 resistance levels. Moreover, the pair surpassed the $0.0620 resistance and the 55 simple moving average (4-hours). Finally, the price tested the $0.0650 resistance, where it faced a strong selling interest.

A swing high was formed near $0.0651 and recently the price started a fresh decline. The price traded below a connecting bullish trend line with support near the $0.0615 level on the 4-hours chart. It broke the $0.0600 support level and the 55 simple moving average (4-hours). It opened the doors for more losses below the 50% Fibonacci retracement level of the last wave from the $0.0500 low to $0.0651 high.

Moreover, there was a break below the $0.0550 support level. At the moment, the price is trading just above the 76.4% Fibonacci retracement level of the last wave from the $0.0500 low to $0.0651 high. If there is a downside break below $0.0535, there could be more losses. The next key support is near the $0.0520 level, below which the price could retest the $0.0500 support.

On the upside, there are many hurdles near the $0.0600 level. An immediate resistance is near $0.0580 and the 55 simple moving average (4-hours). Moreover, there is a key bearish trend line forming with resistance near $0.0602 on the same chart. Therefore, the price is likely to face a lot of hurdles near the $0.0580 and $0.0600 levels.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is trading in a bearish zone below the $0.0600 pivot level. As long as the price is below $0.0600, there are chances of more downsides. Above $0.0600, the price could recover towards the $0.0650 and $0.0670 levels in the near term.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is currently losing pace in the bearish zone.

4 hours RSI – The RSI for ADA/USD is currently correcting higher above the 40 level, with a positive angle.

Key Support Levels – $0.0535 and $0.0500.

Key Resistance Levels – $0.0580 and $0.0600.

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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