HomeAltcoin NewsCardano (ADA) Price Analysis: Breakdown Looks Real, More Losses Likely

Cardano (ADA) Price Analysis: Breakdown Looks Real, More Losses Likely

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  • ADA price topped near the $0.0500 level and declined sharply below $0.0450 against the US Dollar.
  • The price is down more than 20% from the last swing high and it is currently near $0.0385.
  • There was a break below a contracting triangle with support near $0.0478 on the 4-hours chart (data feed via Kraken).
  • The price is currently consolidating losses and likely to face resistance near $0.0400 and $0.0425.

Cardano price declined heavily in the past few sessions against the US Dollar and bitcoin. ADA price remains at a risk of more downsides below the $0.0350 level.

Cardano Price Analysis

After struggling to clear the $0.0550 resistance, cardano price started trading in a range against the US Dollar. The ADA/USD pair struggled to gain bullish momentum above $0.0500 and recently started a sharp decline. There was a break below the $0.0450 support level to enter a bearish zone. Moreover, there was a close below the $0.0450 level and the 55 simple moving average (4-hours).

More importantly, there was a break below a contracting triangle with support near $0.0478 on the 4-hours chart. The pair broke the $0.0400 support area and traded to a new monthly low at $0.0359. It is currently correcting higher above $0.0380. The price tested the 23.6% Fibonacci retracement level of the recent decline from the $0.0493 swing high to $0.0359 low.

On the upside, there are many resistances near the $0.0400 and $0.0425 levels. Moreover, the 50% Fibonacci retracement level of the recent decline from the $0.0493 swing high to $0.0359 low is near the $0.0425 level to act as a strong resistance. The main resistance is near the $0.0435 and $0.0450 levels (the previous support). Therefore, an upside correction towards $0.0450 is likely to face a strong selling interest.

On the downside, an immediate support is near the $0.0365 and $0.0350 levels. If the price fails to stay above $0.0350, there could be another drop. The next support is near $0.0325, followed by $0.0315. Any further losses could push the price back towards the $0.0300 level.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is trading in a bearish zone below $0.0400 and $0.0425. In the short term, there could an upside correction, but the price is likely to face resistance near $0.0400 or $0.0425. As long as the price is trading below the $0.0450 level, there are chances of more losses in the near term.

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 correcting higher from the oversold readings.

Key Support Levels – $0.0365 and $0.0350.

Key Resistance Levels – $0.0400 and $0.0425.

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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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