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HomeAltcoin NewsCardano (ADA) Price Analysis: Significant Downtrend Below $0.060

Cardano (ADA) Price Analysis: Significant Downtrend Below $0.060

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  • ADA price remained in a strong downtrend and broke the $0.0600 support area against the US Dollar.
  • The price declined heavily and broke the $0.0550 and $0.0520 support levels.
  • There is a major declining channel forming with resistance near $0.0568 on the 4-hours chart (data feed via Kraken).
  • The price remains in a downtrend and it could continue to move down below $0.0520.

Cardano price is trading with a bearish bias against the US Dollar and bitcoin. ADA recently tested the $0.0500 support area and it remains at a risk of more losses.

Cardano Price Analysis

After cardano price failed to climb above $0.0850, it declined heavily against the US Dollar. The ADA/USD pair broke the $0.0700 and $0.0650 support levels to register nasty losses. Moreover, there was a break below the $0.0630 support level and the 55 simple moving average (4-hours). Finally, the price broke $0.0600 and tested the $0.0500 level. A new monthly low was formed at $0.0498 and the price is currently correcting higher.

An initial resistance is near the $0.0549 level plus the 23.6% Fibonacci retracement level of the last decline from the $0.0712 high to $0.0498 low. Moreover, there is a major declining channel forming with resistance near $0.0568 on the 4-hours chart. Above the channel resistance, the next key resistance is near the $0.0600 level. The 50% Fibonacci retracement level of the last decline from the $0.0712 high to $0.0498 low is also near the $0.0605 level.

The main resistance is near the $0.0630 level, which was a major support earlier. A successful close above the $0.0600 and $0.0630 levels is needed for a fresh increase in cardano in the near term. The next key resistance above $0.0630 is near the $0.0762 level.  If the price fails to climb above $0.0568 or $0.0600, it could start a fresh decline.

An immediate support is near the $0.0510 level, below which the price may break the $0.0498 swing low. The next stop for the bears may be near the $0.0480 level in the near term.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is currently trading in a significant downtrend below the $0.0600 resistance level. In the short term, there could be an upside correction, but the price is likely to struggle near $0.0600 or $0.0630. If the bulls fail to gain momentum, the price is likely to slide towards or below $0.0500 in the coming days.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is currently losing momentum in the bearish zone.

4 hours RSI – The RSI for ADA/USD is currently correcting higher towards the 40 level, with a positive angle.

Key Support Levels – $0.0510 and $0.0500.

Key Resistance Levels – $0.0568 and $0.0600.

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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