Cardano (ADA) is falling below the $0.500 resistance zone. If ADA stays below the 100 SMA (H4), it may gain bearish momentum and move lower.
- ADA price is slowly moving lower in the $0.520 area.
- The price is trading below $0.500 and the 100 simple moving average (4-hours).
- On the 4-hours chart of the ADA/USD pair, there is a major bearish trendline forming with resistance at $0.4740 (data source from Kraken).
- If the bulls remain active above the $0.4280 support, the pair could attempt a fresh increase.
Cardano Price Faces Major Hurdle
Over the past few days, Cardano has seen a steady decline above the $0.520 resistance area like Bitcoin and Ethereum. ADA price declined below the $0.500 and $0.4950 levels to enter bearish territory.
The upward move from the $0.4000 swing low to the $0.5201 high moved below the 50% Fib retracement level. It even fell below $0.4650 and tested $0.450. The price is currently trading below $0.500 and the 100 simple moving average (4-hours).
There is also a major bearish trendline forming resistance at $0.4740 on the 4-hours chart of the ADA/USD pair. The bulls appear to be active near the $0.450 area and the 61.8% Fib retracement level with an increase from the $0.4000 swing low to the $0.5201 high.
On the positive side, immediate resistance is located near the $0.4740 area, the 100 simple moving average (4-hours) and the trendline. The first resistance is near $0.4920. The next major resistance could be $0.500. If the price closes above the $0.50 resistance line, the price could begin a strong rally.
Source: ADAUSD on TradingView.com
If indicated, the price may rise to the $0.5250 region. Any more profits may require a move to $0.5650.
Will ADA cause more losses?
Cardano’s price may continue falling if it fails to break above the $0.4740 resistance and the 100 simple moving average (4-hours). Immediate support for the downside is near the $0.450 level.
The next major support is near the $0.4280 level. A break below the $0.4280 level could open the door to a $0.40 test. The next major support is near the $0.3880 level.
technical indicators
4-Hour MACD – The MACD for ADA/USD is gaining momentum in bearish territory.
4-Hour RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.4500, $0.4280 and $0.4000.
Key resistance levels – $0.4740, $0.5000 and $0.5200.
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