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Cardano (ADA) Price Analysis: Primed For More Downsides

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  • ADA price is back in a bearish zone below the key $0.0400 support area against the US Dollar.
  • The price is likely to extend its decline towards the $0.0375 or $0.0360 support.
  • There was a break below a major bullish trend line with support near $0.0408 on the 4-hours chart (data feed via Kraken).
  • The price could correct a few points, but the previous support near $0.0408 might prevent gains.

Cardano price is currently declining against the US Dollar and bitcoin. ADA price remains at a risk of more losses towards $0.0375 or even $0.0360 in the near term.

Cardano Price Analysis

This past week, there was a decent rise in cardano price above the $0.0400 resistance against the US Dollar. Moreover, the ADA/USD pair traded above the $0.0420 resistance and the 55 simple moving average (4-hours). Finally, the price spiked above $0.0430 and traded to a new monthly high at $0.0437. Later, the price struggled to continue higher, resulting in a fresh decline below the $0.0420 support area.

Moreover, there was a break below a major bullish trend line with support near $0.0408 on the 4-hours chart. The pair is now trading well below the $0.0400 support and the 55 simple moving average (4-hours). It traded as low as $0.0390 and is consolidating losses. An immediate resistance is near the $0.0398 level. It coincides with the 23.6% Fibonacci retracement level of the recent decline from the $0.0419 high to $0.0390 low.

The first major resistance is near the $0.0400 level. The next resistance is near the $0.0405 since it coincides with the 50% Fibonacci retracement level of the recent decline from the $0.0419 high to $0.0390 low. The main resistance for cardano is near the $0.0408 level since it coincides with the 55 simple moving average (4-hours). Therefore, a successful break above $0.0400 and $0.0408 is must for a fresh increase.

On the downside, a break below the $0.0390 low could push the price towards the $0.0375 support area. Any further downsides might lead the price towards the $0.0360 support area in the coming sessions.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is trading in a bearish zone below the $0.0408 and $0.0400 levels. There are high chances of more losses towards the key $0.0375 support area. Conversely to start a fresh increase, the price must climb above the $0.0408 resistance and the 55 simple moving average (4-hours).

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 40 level, with a bearish angle.

Key Support Levels – $0.0375 and $0.0360.

Key Resistance Levels – $0.0400 and $0.0408.

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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