- ADA price struggled to surpass the $0.0400 resistance and decline recently against the US Dollar.
- The price is currently declining and is trading near the key $0.0375 support area.
- There is a major bearish trend line forming with resistance near $0.0395 on the 4-hours chart (data feed via Kraken).
- The price could continue to move down below $0.0375 and $0.0360 in the coming sessions.
Cardano price is trading with a bearish bias against the US Dollar and bitcoin. ADA price could revisit the $0.0360 and $0.0350 support levels in the near term.
Cardano Price Analysis
After forming a support base near $0.0375, cardano price started an upside correction against the US Dollar. ADA/USD moved above the $0.0385 and $0.0390 resistance levels to start the correction.
Moreover, there was a break above the 23.6% Fibonacci retracement level of the downward move from the $0.0419 high to $0.0374 low. The price even spiked above $0.0395 and the 55 simple moving average (4-hours).
However, it failed to gain strength above the $0.0400 resistance level. It seems like the 50% Fibonacci retracement level of the downward move from the $0.0419 high to $0.0374 low acted as a strong resistance for the bulls.
There is also a major bearish trend line forming with resistance near $0.0395 on the 4-hours chart. As a result, cardano restarted its decline below $0.0390 and the 55 simple moving average (4-hours).
The price broke the $0.0380 support area and it is now trading near the key $0.0375 support area. If there is a downside break below the $0.0375 support, the price is likely to accelerate its decline towards the $0.0360 support area.
Any further downsides might push the price towards the $0.0350 support. On the upside, there is a strong resistance forming near $0.0390, $0.0.395, the bearish trend line, and the 55 SMA.
Therefore, a successful break above the trend line and $0.0400 is needed for a solid recovery in the coming days. The next resistance above $0.0400 is near the $0.0430 area.
The chart indicates that ADA price is gaining bearish momentum below $0.0380 and it seems like it could even break the $0.0375 support area. More importantly, if the price fails to stay above the $0.0360 support, there is a risk of a sharp decline towards $0.0325. Conversely, a close above the $0.0400 resistance may perhaps negate the current bearish view.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is currently gaining momentum in the bearish zone.
4 hours RSI – The RSI for ADA/USD is currently well below the 45 level, with a negative bias.
Key Support Levels – $0.0375 and $0.0360.
Key Resistance Levels – $0.0395 and $0.0400.
