Cardano price started a new downtrend below the $0.4120 support level. Ethereum’s decline seems to be dragging ADA down to the $0.380 support level.
- ADA price is trading down again from the $0.450 resistance zone.
- The price is trading below $0.4120 and the 100 hourly simple moving average.
- On the hourly chart of the ADA/USD currency pair, there is a resistance line forming at $0.4060, forming a major downtrend line (data source: Kraken).
- The pair may continue to decline and test the $0.380 support zone.
Cardano Price Shows Signs of Further Downward Fall
After a steady rise, Cardano faced sellers near the $0.450 resistance zone. ADA formed a short-term peak and started a pullback below the $0.4250 level. The recent decline in Ethereum pushed it lower below the $0.400 support.
A low is forming near $0.3919 and the price is consolidating losses at a downward angle. Also, a major downtrend line is forming with resistance at $0.4060 on the hourly chart of the ADA/USD pair.
Cardano price is currently trading below $0.4100 and the 100 hourly simple moving average. If there is a recovery wave, the price may face resistance near the $0.4050 area and the 50% Fib rectification level of the downtrend from the $0.4211 swing high to the $0.3919 low.
The first resistance level is near $0.4150 or the 76.4% Fibonacci correction level from the $0.4211 swing high to the $0.3919 low. The next major resistance level could be $0.4220. If there is a close above the $0.4220 resistance level, the price could start a strong rally. If indicated, the price could rise to the $0.4450 area. Further upside could require a move to $0.4500.
What are some other downsides to ADA?
If Cardano price fails to break above the $0.4050 resistance level, it may continue to decline. The immediate support for the downtrend is near the $0.3920 level.
The next major support level is near the $0.3800 level. A drop below the $0.3800 level could open up a test of $0.3650. The next major support level is near the $0.3500 level, where bulls could emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in a downtrend.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.
Key support levels – $0.3920 and $0.3800.
Key resistance levels – $0.4050 and $0.4150.