HomeAltcoin NewsCardano (ADA) Price Analysis: More Downsides Possible Unless It Breaks $0.16

Cardano (ADA) Price Analysis: More Downsides Possible Unless It Breaks $0.16

-

  • ADA price started a decline increase after forming a top near the $0.1760 zone the against the US Dollar.
  • The price is now trading below the $0.1600 level and the 55 simple moving average (4-hours).
  • There was a break below a major bullish trend line with support near $0.1640 on the 4-hours chart (data feed via Kraken).
  • The price could resume its decline unless there is a clear break above $0.1600 and $0.1620.

Cardano price is back below the $0.1600 support against the US Dollar, similar to bitcoin. ADA price must surpass $0.1600 and $0.1620 to resume its rise in the near term.

Cardano Price Analysis

Cardano price climbed higher steadily after it broke $0.1600 against the US Dollar. The ADA/USD pair even cleared the $0.1650 and $0.1700 resistance levels. A high was formed near $0.1763 before it started a fresh decline.

There was a sharp drop below the $0.1650 and $0.1600 support levels. The price even settled below $0.1600 and the 55 simple moving average (4-hours). During the decline, there was a break below a major bullish trend line with support near $0.1640 on the 4-hours chart.

ADA broke the 50% Fib retracement level of the key upward move from the $0.1300 swing low to $0.1763 high. Finally, it found support near the $0.1480 level.

It seems like the 61.8% Fib retracement level of the key upward move from the $0.1300 swing low to $0.1763 high acted as a strong support. The price is currently recovering higher and trading above $0.1550. However, the price is facing a strong resistance near the $0.1600 level and the 55 simple moving average (4-hours).

There is also a connecting bearish trend line forming near the $0.1620 level. A successful close above the $0.1600 resistance, with a follow up move above the $0.1620 level could initiate a fresh increase.

The next key resistance is near the $0.1700 level. Conversely, the price could fail to climb above $0.1600 and $0.1620. In the stated case, there is a risk of a fresh dip towards $0.1500 or even $0.1480.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is showing a few bullish signs above $0.1550, but it is still below the 55 SMA. Overall, the price could resume its decline unless there is a clear break above $0.1600 and $0.1620.

Technical Indicators

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

4 hours RSI – The RSI for ADA/USD is currently rising towards the 50 level.

Key Support Levels – $0.1550 and $0.1500.

Key Resistance Levels – $0.1600 and $0.1620.

FOLLOW US

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.

Upcoming Events

Most Popular