HomeAltcoin NewsCardano (ADA) Price Analysis: Risk of More Downsides Below $0.25

Cardano (ADA) Price Analysis: Risk of More Downsides Below $0.25

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  • ADA price is gaining bearish momentum below the $0.280 support zone against the US Dollar.
  • The price is now trading below $0.275 and the 55 simple moving average (4 hours).
  • There is a major bearish trend line forming with resistance near $0.2750 on the 4-hour chart (data feed via Coinbase).
  • The price could continue to move down if it stays below the $0.275 resistance zone.

Cardano price is struggling below $0.280 against the US Dollar, similar to Bitcoin. ADA price could start a fresh increase if it clears the $0.270 and $0.280 resistance levels.

Cardano Price Analysis

This past week, Cardano price saw a rejection pattern near the $0.285 zone against the US Dollar. The ADA/USD pair declined below the $0.275 and $0.262 support levels.

The price even declined below the $0.260 support and the 55 simple moving average (4 hours). It revisited the $0.2520 support zone. A low is formed near $0.2520 and the price is consolidating losses. There was a minor increase above the 23.6% Fib retracement level of the downward move from the $0.3025 swing high to the $0.2520 low.

It is now trading below $0.275 and the 55 simple moving average (4 hours). On the upside, immediate resistance is near the $0.270 zone. The first major resistance is near the $0.275 level.

There is also a major bearish trend line forming with resistance near $0.2750 on the 4-hour chart. It is close to the 50% Fib retracement level of the downward move from the $0.3025 swing high to the $0.2520 low.

The next key resistance could be $0.280. A clear upside break above the $0.280 level might send Cardano price toward the $0.300 resistance. Any more gains could start a steady increase toward the $0.305 level or even $0.320.

On the downside, immediate support is near the $0.2585 level. The next major support is near the $0.252 level, below which the price may perhaps decline toward the $0.235 support level. Any more losses might call for a test of the $0.220 level.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is now trading below $0.275 and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it stays below the $0.280 resistance zone.

Technical Indicators

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

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

Key Support Levels – $0.2585 and $0.2520.

Key Resistance Levels – $0.2750 and $0.280.

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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