Cardano (ADA) Price Dives 6% But This Key Support Is The Key

Cardano’s price started a fresh decline after it failed to surpass $0.40. ADA could extend its decline towards the key $0.335 support zone in the near term. ADA price is gaining bearish momentum below the $0.380 support against the US dollar. The price is trading below $0.380 and the 100 simple moving average (4-hours). There was a break below a major bullish trend line with support near $0.3850 on the 4-hours chart of the ADA/USD pair (data source from Kraken). The pair could continue to move d[...]

Cardano’s price started a fresh decline after it failed to surpass $0.40. ADA could extend its decline towards the key $0.335 support zone in the near term.

• ADA price is gaining bearish momentum below the $0.380 support against the US dollar.
• The price is trading below $0.380 and the 100 simple moving average (4-hours).
• There was a break below a major bullish trend line with support near $0.3850 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
• The pair could continue to move down towards the $0.335 support zone.

Cardano’s ADA Price Starts Downside Correction

In the past few days, cardano’s price saw a steady increase above the $0.35 resistance zone. The price climbed above the $0.38 and $0.388 resistance levels.

The price even spiked above the $0.40 resistance before the bears appeared. A high was formed near $0.413 before the price started a downside correction, similar to bitcoin and ethereum. There was a break below a major bullish trend line with support near $0.3850 on the 4-hours chart of the ADA/USD pair.

Cardano price is now trading below $0.380 and the 100 simple moving average (4-hours). A low is formed near $0.354 and the price is showing bearish signs.

On the upside, an immediate resistance is near the $0.365 zone. It is near the 23.6% Fib retracement level of the recent decline from the $0.3995 swing high to $0.3543 low. The first major resistance is forming near the $0.376 zone.

The main resistance is now forming near the $0.3880 level and the 100 simple moving average (4-hours). It coincides with the 76.4% Fib retracement level of the recent decline from the $0.3995 swing high to $0.3543 low.

Source: ADAUSD on TradingView.com

If there is an upside break above the $0.380 and $0.384 resistance levels, the price could start a strong increase. In the stated case, the price could rise steadily towards the $0.42 level.

More Losses in ADA?

If cardano’s price fails to recover above the $0.376 and $0.380 resistance levels, it could continue to move down. An immediate support on the downside is near the $0.350 level.

The next major support is near the $0.335 level. A downside break below the $0.335 level could open the doors for a fresh decline towards $0.320 in the coming days. The next major support is near the $0.300 level.

Technical Indicators

4-hours MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.

Major Support Levels – $0.350, $0.335 and $0.320.

Major Resistance Levels – $0.376, $0.380 and $0.400.

Source: NewsBTC