- ADA price failed to break the $0.0460 resistance and declined recently against the US Dollar.
- The price is now trading below the $0.0425 support, with a bearish angle.
- There was a break below a key bullish trend line with support near $0.0424 on the 4-hours chart (data feed via Kraken).
- The price remains at a risk of more downsides below $0.0410 and $0.0400 in the near term.
Cardano price is currently facing a fresh round of selling against the US Dollar and bitcoin. ADA price is likely to face a lot of hurdles if it corrects higher towards $0.0440.
Cardano Price Analysis
Recently, cardano price made another attempt to climb above the $0.0460 and $0.0465 resistances against the US Dollar. However, the ADA/USD pair failed to gain strength above $0.0460 and formed a high near $0.0461.
Later, there was a fresh decline below the $0.0450 and $0.0440 levels. Moreover, there was a break below the $0.0425 support area and the 55 simple moving average (4-hours).
Finally, there was a break below a key bullish trend line with support near $0.0424 on the 4-hours chart. The price tested the $0.0410 support area and a low was formed near $0.04108. At the moment, cardano price is correcting higher towards the $0.0425 resistance.
It seems to be facing resistance near the 23.6% Fibonacci retracement level of the recent decline from the $0.0461 high to $0.0410 low. The next resistance on the upside is near the $0.0435 area and the 55 simple moving average (4-hours).
Besides, the 50% Fibonacci retracement level of the recent decline from the $0.0461 high to $0.0410 low is likely to act as a resistance near the $0.0435 level. The main resistances on the upside are near the $0.0445 and $0.0460 levels, above which the bulls are likely to take over.
Conversely, the price might struggle to correct above $0.0425 and $0.0435. In the mentioned case, the price is likely to decline below the $0.0410 support. The next major support is near the $0.0400 level, below which the price could decline heavily towards the $0.0380 level.
The chart indicates that ADA price is clearly struggling to stay above the $0.0410 support area. Thus, there are possibilities of a downside extension below the $0.0410 and $0.0400 support levels. On the flip side, the price must move above the $0.0425 and $0.0435 resistance to avoid a breakdown below $0.0400.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
4 hours RSI – The RSI for ADA/USD is currently declining and is near the 40 level.
Key Support Levels – $0.0410 and $0.0400.
Key Resistance Levels – $0.0425 and $0.0435.
