HomeAltcoin NewsCardano (ADA) Price Analysis: Primed For More Declines Below $0.0520

Cardano (ADA) Price Analysis: Primed For More Declines Below $0.0520

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  • ADA price started a major declined from the $0.0620 resistance against the US Dollar.
  • The price is now trading well below the $0.0600 and $0.0580 support levels.
  • There was a break below a crucial contracting triangle with support near $0.0581 on the 4-hours chart (data feed via Kraken).
  • The price remains at a risk of more losses below the $0.0520 and $0.0510 support levels.

Cardano price is trading in a downtrend against the US Dollar and bitcoin. ADA price is facing a strong selling pressure and it may soon revisit the $0.0500 support.

Cardano Price Analysis

After struggling near $0.0650, cardano price started a slow and steady decline against the US Dollar. The ADA/USD pair broke many important supports near $0.0620 and $0.0600 to enter a bearish zone. Moreover, there was a close below the $0.0600 support and the 55 simple moving average (4-hours). Finally, there was a break below a crucial contracting triangle with support near $0.0581 on the 4-hours chart.

It opened the doors for more downside below the $0.0580 support. The price even traded below the $0.0550 support and a new weekly low was formed near $0.0526 recently. Currently, the price is consolidating losses above $0.0525. An immediate resistance is near the $0.0550 level. Moreover, the 23.6% Fibonacci retracement level of the recent decline from the $0.0623 high to $0.0526 low is also near the $0.0550 level.

Additionally, there is a connecting bearish trend line forming with resistance near $0.0565 on the same chart. If there is a successful break above the $0.0565 resistance, there could be a decent recovery. The next key resistance is near the $0.0580 level, the 55 simple moving average (4-hours), and the 50% Fibonacci retracement level of the recent decline from the $0.0623 high to $0.0526 low.

Conversely, if the price fails to recover, it could decline below the $0.0525 and $0.0520 support levels. In the mentioned bearish case, the price is likely to surpass the $0.0510 support as well. The main support is near the $0.0500 level, where the bulls may take a stand.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is clearly trading in a strong downtrend below $0.0550 and $0.0580. As long as the price is below $0.0580, there is a risk of more losses in the near term. On the downside, the most important support is at $0.0500, below which the price could decline significantly.

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 30 level, with no major sign of a recovery.

Key Support Levels – $0.0520 and $0.0500.

Key Resistance Levels – $0.0550 and $0.0580.

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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