HomeAltcoin NewsCardano (ADA) Price Analysis: Risk of Bearish Break Below $0.525

Cardano (ADA) Price Analysis: Risk of Bearish Break Below $0.525

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  • ADA price started a downside correction from the $0.620 zone against the US Dollar.
  • The price is now trading below $0.55 and the 55 simple moving average (4 hours).
  • There was a break below a key bullish trend line with support near $0.5420 on the 4-hour chart (data feed via Coinbase).
  • The price could start a fresh increase if it clears the $0.550 and $0.565 resistance levels.

Cardano’s price is consolidating above $0.525 against the US Dollar, like Bitcoin. ADA price could resume its rally if there is a clear move above the $0.550 resistance.

Cardano Price (ADA) Analysis

In the past few weeks, Cardano’s price started a steady increase above the $0.565 resistance zone against the US Dollar. The ADA/USD pair gained pace for a move above the $0.580 and $0.600 levels.

The price tested the $0.620 zone. The recent high was formed near $0.6196 and the price corrected lower. There was a move below the $0.600 support zone. The price dipped below the 50% Fib retracement level of the upward move from the $0.4650 swing low to the $0.6196 high.

There was a break below a key bullish trend line with support near $0.5420 on the 4-hour chart. However, the bulls are now protecting the $0.525 support. The 61.8% Fib retracement level of the upward move from the $0.4650 swing low to the $0.6196 high also acted as a support.

ADA price is now trading below $0.550 and the 55 simple moving average (4 hours). On the upside, immediate resistance is near the $0.550 zone.

The next major resistance is near the $0.565 zone. A clear move above the $0.565 resistance might start a strong increase toward $0.620. Any more gains above the $0.620 resistance might send the price toward the $0.650 resistance or even $0.700.

On the downside, immediate support is near the $0.524 level. The next major support is near the $0.500 level. A clear move below the $0.500 level might send the price toward the $0.4650 level. Any more losses might send the price toward the $0.450 support.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is now trading below $0.550 and the 55 simple moving average (4 hours). Overall, the price could gain bullish momentum if it clears the $0.550 and $0.565 resistance 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 – $0.524 and $0.500.

Key Resistance Levels – $0.550 and $0.650.

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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