The price of Cardano has begun a new decline, falling below the $0.3565 level. Currently, ADA is consolidating above $0.3420 and may attempt to initiate a recovery wave.
- ADA’s price has commenced a downward trend, dropping below the $0.3520 support threshold.
- Currently, the price is trading under $0.3500 and beneath the 100-hourly simple moving average.
- A break occurred above a significant bearish trend line, which had resistance at $0.3460 on the hourly chart of the ADA/USD pair (source: Kraken).
- If the pair surpasses the $0.3520 resistance zone, it could initiate a recovery wave.
Cardano Price Retains Losses
After encountering resistance at $0.3700, Cardano faced challenges in continuing its upward momentum. Unlike Bitcoin and Ethereum, ADA established a short-term peak before initiating a new decline. The price slipped below the $0.3550 and $0.3500 support levels.
The value even dropped beneath $0.3450 until bullish activity emerged. A low of $0.3394 was reached, and the price is currently consolidating losses. There was a slight increase above the $0.3420 mark, and the price surpassed the 23.6% Fib retracement level of the decline from the $0.3705 swing high to the $0.3394 low.
Moreover, a breakout occurred above a key bearish trend line with resistance situated at $0.3460 on the hourly chart of the ADA/USD pair. Cardano’s price is presently trading below $0.350 and the 100-hourly simple moving average.
On the upside, resistance may be encountered around the $0.3515 region. The initial resistance is near $0.3550 or the 50% Fib retracement level of the decline from the $0.3705 swing high to the $0.3394 low. The subsequent key resistance may lie at $0.3620.
Should the price close above the $0.3620 resistance, it could trigger a significant rally, potentially climbing towards the $0.3700 region. Further gains might lead to a rise towards $0.3880.
Potential for Further Declines in ADA?
If Cardano’s price cannot rise above the $0.350 resistance level, it might start another downturn. The immediate downside support is located around the $0.3420 level.
The next significant support is near the $0.3400 mark. A breakdown below this level could pave the way for a test of $0.3220. The subsequent major support is around the $0.3100 level, where bullish activity might be expected.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is losing strength within the bearish territory.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD has now dipped below the 50 mark.
Major Support Levels – $0.3400 and $0.3220.
Major Resistance Levels – $0.3500 and $0.3550.
