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HomeAltcoin NewsCardano (ADA) Price Analysis: Signs of a Bearish Breakdown

Cardano (ADA) Price Analysis: Signs of a Bearish Breakdown

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  • ADA price is struggling to clear the $0.1600 and $0.1740 resistance levels against the US Dollar.
  • The price is now trading below the $0.1600 pivot level and the 55 simple moving average (4-hours).
  • There is a key bearish trend line forming with resistance near $0.1580 on the 4-hours chart (data feed via Kraken).
  • The price could decline sharply below $0.1450 as long as it is below $0.1600.

Cardano price is showing a few bearish signs below $0.1600 against the US Dollar, unlike bitcoin. ADA price must stay above $0.1450 to avoid a breakdown in the near term.

Cardano Price Analysis

Cardano price started a downside correction after it failed to surpass the $0.1740 resistance against the US Dollar. The ADA/USD pair traded below the $0.1700 and $0.1650 levels to move into a short-term bearish zone.

The price broke the $0.1600 support level and settled below the 55 simple moving average (4-hours). ADA declined below the 23.6% Fib retracement level of the upward move from the $0.1230 swing low to $0.1740 swing high.

It even spiked below the $0.1500 support, but the bulls remained active near $0.1450. The 50% Fib retracement level of the upward move from the $0.1230 swing low to $0.1740 swing high is also acting as a decent support.

On the upside, the price is facing a strong resistance near the $0.1600 level. There is also a key bearish trend line forming with resistance near $0.1580 on the 4-hours chart. If there is an upside break above the trend line and $0.1600, the price could rise steadily towards the $0.1700 resistance.

The next major resistance sits near the $0.1740 level, above which ADA could start a strong rally. Conversely, the price could continue to move down below $0.1500. The first key support is near the $0.1450 level.

If there is a downside break below the $0.1450 support, there could be a sharp decline. The next major support for the bulls may possibly be near the $0.1240 level.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is showing a few bearish signs below $0.1600 and the 55 SMA. Overall, the price could decline sharply below $0.1450 as long as it is below $0.1600.

Technical Indicators

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

4 hours RSI – The RSI for ADA/USD is currently rising and it is approaching the 50 level.

Key Support Levels – $0.1500 and $0.1450.

Key Resistance Levels – $0.1600 and $0.1700.

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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