HomeAltcoin NewsCardano (ADA) Price Analysis: Risk of More Losses Below $0.35

Cardano (ADA) Price Analysis: Risk of More Losses Below $0.35

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  • ADA price failed to surpass the $0.420 resistance and declined against the US Dollar.
  • The price is now trading below $0.400 and the 55 simple moving average (4-hours).
  • There is a major bearish trend line forming with resistance near $0.392 on the 4-hours chart (data feed via Bitfinex).
  • The price could continue to move down if it fails to stay above the $0.350 support zone.

Cardano price is struggling below $0.40 against the US Dollar, similar to bitcoin. ADA price could gain bearish momentum if it clears the $0.350 support.

Cardano Price Analysis

This past week, cardano price faced a strong rejection near the $0.440 zone against the US Dollar. The ADA/USD pair formed a high near $0.440 and started a fresh decline.

There was a clear move below the $0.400 and $0.380 support levels. The price even declined below the $0.350 support and the 55 simple moving average (4-hour). A low was formed near $0.349 and the price is now consolidating losses.

It corrected a few points above the $0.360 level. It corrected above the 23.6% Fib retracement level of the downward move from the $0.437 swing high to $0.349 low.

On the upside, an immediate resistance is near the $0.375 zone. The first major resistance is near the $0.392 level. There is also a major bearish trend line forming with resistance near $0.392 on the 4-hours chart. The trend line is near the 50% Fib retracement level of the downward move from the $0.437 swing high to $0.349 low.

The next major resistance is near the $0.400 zone. A clear upside break above the $0.400 level might send the price towards the $0.405 resistance. Any more gains could start a steady increase towards the $0.50 level in the near term.

On the downside, an immediate support is near the $0.355 level. The next major support is near the $0.350 level, below which the price may perhaps decline towards the $0.32 support level. Any more losses might call for a test of the $0.300 level.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is now trading below $0.40 and the 55 simple moving average (4-hours). Overall, the price could continue to move down if it fails to stay above the $0.350 support 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 – $0.355 and $0.350.

Key Resistance Levels – $0.375 and $0.400.

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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