HomeAltcoin NewsCardano (ADA) Price Analysis: Risk of More Losses Below $2.20

Cardano (ADA) Price Analysis: Risk of More Losses Below $2.20

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  • ADA price started a sharp decline from the $3.00 zone against the US Dollar.
  • The price is now trading below $2.60 and the 55 simple moving average (4-hours).
  • There is a major bearish trend line forming with resistance near $2.68 on the 4-hours chart (data feed via Bitfinex).
  • The price could start another strong decline if it breaks the $2.20 support zone.

Cardano price is facing many hurdles near $2.65 against the US Dollar, similar to bitcoin. ADA price must stay above $2.20 to start a decent recovery wave.

Cardano Price Analysis

After struggling to stay above $3.00, cardano price started a major decline against the US Dollar. The ADA/USD pair broke the $2.80 support to move further into a bearish zone.

The price even broke the $2.50 support level and settled below the 55 simple moving average (4-hours). Finally, there was a spike below the $2.10 level before the price recovered higher. There was a wave above the $2.50 level, but the price failed to surpass the $2.80 level.

The recent high was formed near $2.78 before the price trimmed gains. A low is formed near $2.31 and the price is now consolidating losses.

An immediate resistance is near the $2.55 level. It is near the 50% Fib retracement level of the recent decline from the $2.78 swing high to $2.31 low. The next major resistance is forming near the $2.60 level. There is also a major bearish trend line forming with resistance near $2.68 on the 4-hours chart.

The trend line is close to the 76.4% Fib retracement level of the recent decline from the $2.78 swing high to $2.31 low. If there is an upside break above the $2.68 zone, the price could rally above $2.80.

An immediate support is near the $2.32 level. The main support sits near the $2.20 level. Any more losses might call for a sharp decline to $2.00.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is now trading below $2.60 and the 55 simple moving average (4-hours). Overall, the price could start another strong decline if it breaks the $2.20 support zone.

Technical Indicators

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

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

Key Support Levels – $2.32 and $2.20.

Key Resistance Levels – $2.55 and $2.68.

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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