- ADA price is under a lot of pressure below the $0.0350 level against the US Dollar.
- The price is down more than 10% and it traded close to the $0.0300 support.
- There is a major bearish trend line forming with resistance near $0.0355 on the 4-hours chart (data feed via Kraken).
- The price could recover in the near term as long as it is above the $0.0300 support.
Cardano price is in a strong downtrend against the US Dollar and bitcoin. ADA price could correct higher, but the $0.0330 and $0.0350 levels are important hurdles.
Cardano Price Analysis
In the past few days, cardano price followed a bearish path below $0.0375 against the US Dollar. The ADA/USD pair gained bearish momentum below the $0.0350 support and the 55 simple moving average (4-hours).
It opened the doors for more losses and the price even traded below the $0.0330 level. Finally, it traded close to the $0.0300 level and a new multi-month low was formed near the $0.0312 level.
At the moment, the price is consolidating losses above the $0.0310 level. An initial resistance is near the $0.0325 level. Besides, the 23.6% Fibonacci retracement level of the recent slide from the $0.0366 high to $0.0312 low is also near $0.0325.
The first major resistance is near the $0.0332 area (the recent breakdown zone). The next one is near the $0.0340 level since it is close to the 50% Fibonacci retracement level of the recent slide from the $0.0366 high to $0.0312 low.
The main resistance is near the $0.0355 level (the main breakdown support). Additionally, there is a major bearish trend line forming with resistance near $0.0355 on the 4-hours chart.
Therefore, a successful close above the $0.0355 resistance and the 55 simple moving average (4-hours) is needed to start a strong recovery and upward move.
On the downside, an initial support is near the $0.0315 level. The first key support is near the $0.0305 and $0.0300 levels, where the bulls are likely to take a stand. If they fail to protect $0.0300, the price could tumble in the near term.
The chart indicates that ADA price is showing a lot of bearish signs below the $0.0332 and $0.0355 resistance levels. Having said that, the price could start a decent recovery as long as there is no clear break below the $0.0300 support area.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is slowly reducing its bearish slope.
4 hours RSI – The RSI for ADA/USD is currently correcting higher towards the 30 level.
Key Support Levels – $0.0305 and $0.0300.
Key Resistance Levels – $0.0332 and $0.0355.