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HomeAltcoin NewsCardano (ADA) Price Analysis: Downside Correction Could Be Limited

Cardano (ADA) Price Analysis: Downside Correction Could Be Limited

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  • ADA price is correcting gains from the $0.415 zone against the US Dollar.
  • The price is now trading below $0.40 and the 55 simple moving average (4-hours).
  • There was a break below a key rising channel with support near $0.388 on the 4-hours chart (data feed via Bitfinex).
  • The price could gain resume its increase if it stays above the $0.370 and $0.365 support levels.

Cardano price is correcting lower below $0.40 against the US Dollar, similar to bitcoin. ADA price could extend its decline if it breaks the $0.365 support.

Cardano Price Analysis

This past week, cardano price started a steady increase above the $0.365 resistance zone against the US Dollar. The ADA/USD pair gained pace for a move above the $0.388 and $0.390 levels.

It even broke the $0.400 level and settled well above the 55 simple moving average (4-hours). It traded as high as $0.413 and recently started a downside correction. There was a move below the $0.392 and $0.388 levels. There was also a break below a key rising channel with support near $0.388 on the 4-hours chart.

It is now trading below $0.400 and the 55 simple moving average (4-hours). A low is formed near $0.379 and the price is consolidating losses.

On the upside, an immediate resistance is near the $0.388 zone. It is near the 23.6% Fib retracement level of the recent decline from the $0.413 swing high to $0.379 low. The next major resistance is near the $0.398 level or the $0.400 zone.

The 50% Fib retracement level of the recent decline from the $0.413 swing high to $0.379 low is also near $0.398. A clear move above the $0.400 resistance might start a strong increase. Any more gains above the $0.412 resistance might send the price towards the $0.435 resistance or even $0.450.

On the downside, an immediate support is near the $0.380 level. The next major support is near the $0.365 level. A clear move below the $0.365 level might send the price towards the $0.338 level. Any more losses might send the price towards the $0.300 support.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is now trading below $0.40 and the 55 simple moving average (4-hours). Overall, the price could gain resume its increase if it stays above the $0.370 and $0.365 support levels.

Technical Indicators

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

4 hours RSI – The RSI for ADA/USD is now below the 50 level.

Key Support Levels – $0.380 and $0.365.

Key Resistance Levels – $0.388 and $0.398.

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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