HomeAltcoin NewsCardano (ADA) Price Analysis: Signs of Bearish Continuation

Cardano (ADA) Price Analysis: Signs of Bearish Continuation

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  • ADA price declined steadily after it failed to surpass the $0.0400 resistance against the US Dollar.
  • The price is slowly approaching the key $0.0355 support area.
  • Earlier, there was a break below a key contracting triangle with support near $0.0382 on the 4-hours chart (data feed via Kraken).
  • The price is under pressure and it seems like it could even struggle to hold the $0.0355 support.

Cardano price is showing a lot of bearish signs against the US Dollar and bitcoin. ADA price is likely to continue lower below $0.0355 and $0.0340 in the near term.

Cardano Price Analysis

This past week, cardano price made an attempt to surpass the $0.0400 resistance area against the US Dollar. However, the ADA/USD pair failed to gain strength above $0.0390 and topped near the $0.0392 level.

As a result, the pair started a fresh decrease below the $0.0380 level and the 55 simple moving average (4-hours). Moreover, there was a break below a key contracting triangle with support near $0.0382 on the 4-hours chart.

It opened the doors for more downsides towards the $0.0355 support. The recent low is $0.0361 and the price is currently consolidating losses. An immediate resistance is near the $0.0368 level.

Besides, the 23.6% Fibonacci retracement level of the recent decline from the $0.0392 high to $0.0361 low is also near $0.0368. The first major resistance is near the $0.0375 area and the 55 simple moving average (4-hours).

The 50% Fibonacci retracement level of the recent decline from the $0.0392 high to $0.0361 low is also near the $0.0376 level to act as a strong resistance.

The main resistance on the upside is still near the $0.0392 and $0.0400 levels. A clear break above $0.0400 is needed for cardano bulls to return into action. The next resistance is seen near the $0.0420 level.

On the downside, an initial support is near the $0.0360 level. The first major support is near the $0.0355 level, below which the bears are likely to aim the last month swing low near the $0.0330 level. Any further losses might lead the price towards the $0.0300 level.

Cardano Price
Cardano Price

The chart indicates that ADA price is clearly back in a bearish zone below $0.0380 and $0.0400. As long as the price is below $0.0400, the bears remain in control and they seem to be eyeing a test of the $0.0330 level.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is slowly reducing its bearish slope.

4 hours RSI – The RSI for ADA/USD is currently correcting higher towards the 40 level.

Key Support Levels – $0.0355 and $0.0330.

Key Resistance Levels – $0.0382 and $0.0400.

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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