Cardano (ADA) is falling below the $0.620 resistance zone. ADA may gain bearish momentum and decline towards the $0.50 support level.
- ADA price is slowly falling in the $0.670 area.
- The price is trading below $0.620 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 $0.6008 (data source from Kraken).
- If the bulls remain active above the $0.560 support, the pair could attempt a fresh increase.
Cardano price reaches key support
Over the past few days, Cardano has seen a steady decline above the $0.670 resistance area like Bitcoin and Ethereum. ADA price declined below the $0.650 and $0.620 levels to enter bearish territory.
It even fell below $0.580 and tested $0.560. A low was formed at $0.5592 and the price is consolidating losses. It tested the 23.6% Fib retracement level moving down from the $0.6701 swing high to the $0.5592 low.
ADA price is currently trading below $0.620 and the 100 simple moving average (4-hours). On the positive side, immediate resistance is located near the $0.6010 area. There is also a major bearish trendline forming with resistance at $0.6008 on the 4-hours chart of the ADA/USD pair.
First resistance is near $0.6150 or the 50% Fib retracement level for a downside move from the $0.6701 swing high to the $0.5592 low. The next major resistance could be at $0.6280. If the price closes above the $0.6280 resistance line, the price could begin a strong rally.
Source: ADAUSD on TradingView.com
If indicated, the price may rise to the $0.6550 region. Any more profits may require a move to $0.670.
Will ADA cause more losses?
If the price of Cardano fails to break above the $0.6150 resistance level, it may continue to decline. Immediate support for the downside is near the $0.560 level.
The next major support is near the $0.520 level. A break below the $0.520 level could open the door to a $0.50 test. The next major support is near the $0.4880 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 – $0.5600, $0.5200 and $0.4880.
Key resistance levels – $0.6150, $0.6280 and $0.6700.
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