HomeAltcoin NewsCardano (ADA) Price Analysis: Risk of More Downsides Below $0.34

Cardano (ADA) Price Analysis: Risk of More Downsides Below $0.34

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  • ADA price is gaining bearish momentum below the $0.365 support zone against the US Dollar.
  • The price is now trading below $0.355 and the 55 simple moving average (4 hours).
  • There was a break below a key bullish trend line with support near $0.364 on the 4-hour chart (data feed via Coinbase).
  • The price could continue to move down if it stays below the $0.365 resistance zone.

Cardano price is struggling below $0.364 against the US Dollar, similar to Bitcoin. ADA price could start a fresh increase if it clears the $0.355 and $0.365 resistance levels.

Cardano Price Analysis

This past week, Cardano price saw a rejection pattern near the $0.382 zone against the US Dollar. The ADA/USD pair declined below the $0.380 and $0.368 support levels.

There was a break below a key bullish trend line with support near $0.364 on the 4-hour chart. The price even declined below the $0.355 support and the 55 simple moving average (4 hours). It revisited the $0.348 support zone.

A low is formed near $0.3470 and the price is consolidating losses. It is now trading below $0.365 and the 55 simple moving average (4 hours). On the upside, immediate resistance is near the $0.3552 zone or the 23.6% Fib retracement level of the downward move from the $0.3819 swing high to the $0.3470 low.

The first major resistance is near the $0.364 level. It is close to the 50% Fib retracement level of the downward move from the $0.3819 swing high to the $0.3470 low.

A clear upside break above the $0.364 level might send the price toward the $0.380 resistance. Any more gains could start a steady increase toward the $0.388 level or even $0.400. On the downside, immediate support is near the $0.347 level.

The next major support is near the $0.332 level, below which the price may perhaps decline toward the $0.320 support level. Any more losses might call for a test of the $0.30 level.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is now trading below $0.364 and the 55 simple moving average (4 hours). Overall, the price could continue to move down if it stays below the $0.365 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 – $0.347 and $0.332.

Key Resistance Levels – $0.355 and $0.365.

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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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