Cardano price failed to break above $0.40 and started another downtrend. ADA is currently trading below $0.3850 and could extend losses in the short term.
- ADA price is down again, trading below $0.3880.
- The price is trading below $0.3850 and the 100 hourly simple moving average.
- A major bullish trend line broke with support at $0.3845 on the hourly chart of the ADA/USD pair (data source: Kraken).
- The pair could extend losses and test the $0.370 support zone.
Cardano price drops again
In the past few days, Cardano has attempted a recovery wave above the $0.3650 zone, similar to Bitcoin and Ethereum. However, ADA failed to break above the $0.40 resistance zone. A high was formed at $0.3967 and the price started a new downtrend.
It moved below the $0.3880 and $0.3865 support levels. The price fell below the 23.6% Fib rectification level of the upward move from the $0.3620 swing low to the $0.3967 high. Moreover, it broke below the major bullish trend line with support at $0.3845 on the hourly chart of the ADA/USD pair.
ADA price is currently trading below $0.3850 and the 100 hourly simple moving average. If there is another uptrend, the price may face resistance near the $0.3850 area.
The first resistance level is near $0.3880. The next major resistance level could be $0.40. If there is a close above the $0.40 resistance level, the price could start a strong rally. If mentioned, the price could rise to the $0.4150 area. Further upside could require a move to $0.4250.
What are some other downsides to ADA?
If Cardano price fails to break above the $0.3850 resistance level, it could continue to decline. The immediate support for the downside is near the $0.3795 level or the 50% Fibonacci retracement level of the upward move from the $0.3620 swing low to the $0.3967 high.
The next major support level is near the $0.370 level. A drop below the $0.370 level could open the door for a test of $0.350. The next major support level is near the $0.3350 level.
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 – $0.3790, $0.370, $0.350.
Key resistance levels – $0.3880 and $0.400.