HomeAltcoin NewsCardano (ADA) Price Analysis: Risk of Heavy Losses Below $1.20

Cardano (ADA) Price Analysis: Risk of Heavy Losses Below $1.20

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  • ADA price started a fresh decline from the $1.40 resistance against the US Dollar.
  • The price is now trading below $1.35 and the 55 simple moving average (4-hours).
  • There is a key bearish trend line forming with resistance near $1.335 on the 4-hours chart (data feed via Bitfinex).
  • The price might extend losses if there is a clear break below the $1.20 support.

Cardano price is struggling below the $1.40 resistance against the US Dollar, unlike bitcoin. ADA price must clear $1.35 to start a fresh increase.

Cardano Price Analysis

This week, cardano price saw a major decline below the $1.50 level against the US Dollar. The ADA/USD pair traded below the $1.35 support level to enter a bearish zone.

The bears gained strength for a move below the $1.30 level. The price even traded below the $1.25 level and settled below the 55 simple moving average (4-hours). A low was formed near $1.205 and the price is now consolidating losses.

It is facing resistance near the $1.25 level. It is close to the 23.6% Fib retracement level of the downward move from the $1.415 swing high to $1.200 low.

The next key resistance is near the $1.308 level. It is close to the 50% Fib retracement level of the downward move from the $1.415 swing high to $1.200 low. There is also a key bearish trend line forming with resistance near $1.335 on the 4-hours chart.

A clear break above the $1.335 resistance could pump the price towards the $1.35 level. Any more gains could push the price towards the $1.40 level.

On the downside, an immediate support is near the $1.205 level. The first major support is near $1.20. Any more losses might lead the price towards the $1.15 level, below which the bears could gain strength in the near term. In the stated case, the price could revisit $1.05.

Cardano Price
Cardano Price

The chart indicates that ADA price is now trading below $1.40 and the 55 simple moving average (4-hours). Overall, the price might might extend losses if there is a clear break below the $1.20 support.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is moving in the bearish zone.

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

Key Support Levels – $1.20 and $1.15.

Key Resistance Levels – $1.308 and $1.350.

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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