- ADA price started a major decline and traded below the $0.0520 support against the US Dollar.
- The price traded as low as $0.0450 and it is currently correcting higher.
- There is a key bearish trend line forming with resistance near $0.0515 on the 4-hours chart (data feed via Kraken).
- The price could resume its decline if it fails to recover above the $0.0515 and $0.0520 resistance levels.
Cardano price is facing an increase in selling pressure against the US Dollar and bitcoin. ADA price must settle above the $0.0520 resistance to start a decent recovery.
Cardano Price Analysis
This past week, cardano price extended its decline below the $0.0550 support area against the US Dollar. The ADA/USD pair even declined below the $0.0500 support and the 55 simple moving average (4-hours).
A new monthly low is formed near the $0.0450 and the price is currently correcting higher. It is trading above the $0.0490 and testing the 23.6% Fibonacci retracement level of the downside move from the $0.0620 swing high to $0.0450 low.
On the upside, an initial resistance is near the $0.0515 level and the 55 simple moving average (4-hours). Moreover, there is a key bearish trend line forming with resistance near $0.0515 on the 4-hours chart.
If there is an upside break above the $0.0515 and $0.0520 resistance levels, the price could start a decent recovery. An immediate resistance is near the $0.0525 level. It coincides with the 50% downside move from the $0.0620 swing high to $0.0450 low.
Any further gains could lead the price towards the key $0.0550 and $0.0560 resistance levels in the near term. Conversely, the price may perhaps fail to continue higher above the $0.0520 resistance area.
In the mentioned case, there is a risk of a fresh decline below the $0.0480 and $0.0460 levels. The price could even dive below the $0.0450 swing low to continue lower. The next major support below the $0.0450 low is near the $0.0420 area. Any further losses is likely to lead the price towards the $0.0400 area.
The chart indicates that ADA price is clearly facing a lot of hurdles on the upside near the $0.0515 and $0.0520 levels. A successful break above $0.0520 may perhaps start a fresh increase towards the $0.0550 resistance in the coming sessions.
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 back above the 50 level.
Key Support Levels – $0.0480 and $0.0450.
Key Resistance Levels – $0.0520 and $0.0550.
