- ADA price extended its decline below the $0.0450 and $0.0420 support levels against the US Dollar.
- The price traded as low as $0.0391 and it is currently consolidating losses.
- There is a major bearish trend line forming with resistance near $0.0470 on the 4-hours chart (data feed via Kraken).
- The price could correct higher in the short term, but it is likely to face sellers near $0.0460.
Cardano price is following a downtrend below key supports against the US Dollar and bitcoin. ADA price could extend its decline if it fails to recover above $0.0450 and $0.0460.
Cardano Price Analysis
After settling below the $0.0500 support level, cardano price extended its decline against the US Dollar. The ADA/USD pair broke the $0.0450 support level and settled well below the 55 simple moving average (4-hours).
Finally, there was a spike below the $0.0400 support and the price traded as low as $0.0391. It is currently consolidating losses and trading above the $0.0400 level.
An initial resistance is near the $0.0420 level. The 23.6% Fibonacci retracement level of the recent decline from the $0.0518 high to $0.0391 low is also near the $0.0421 level to act as a resistance.
If there is an upside correction above the $0.0420 resistance, cardano price might recover towards the next major resistance at $0.0450. Besides, the 50% Fibonacci retracement level of the recent decline from the $0.0518 high to $0.0391 low is near $0.0455 to prevent gains.
More importantly, there is a major bearish trend line forming with resistance near $0.0470 on the 4-hours chart. The 55 simple moving average (4-hours) is also positioned near the $0.0470 area.
A successful close above the $0.0450 resistance and a follow through above $0.0470 is needed to start a strong increase in the coming sessions. Conversely, the price might continue to move down below the $0.0400 support level.
An immediate support is near the $0.0391 low, below which there is a risk of a sharp decline below the $0.0380 support level in the near term. The next major support is near the $0.0365 level.
The chart indicates that ADA price is clearly trading in a downtrend and facing a lot of hurdles near $0.0450. If the bulls fail to push the price above the $0.0450 and $0.0470 resistance levels, ADA could slide below the $0.0391 low in the near term.
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 correcting higher towards the 45 level.
Key Support Levels – $0.0400 and $0.0380.
Key Resistance Levels – $0.0450 and $0.0470.
