Cardano (ADA) is moving lower below the $0.620 resistance zone. ADA could gain bearish momentum and decline toward the $0.50 support.
ADA price is slowly moving lower from the $0.670 zone.
The price is trading below $0.620 and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance at $0.6008 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
The pair could attempt a fresh increase if the bulls remain active above the $0.560 support.
Cardano Price Reaches Key Support
In the past few days, Cardano saw a steady decline from the $0.670 resistance zone, like Bitcoin and Ethereum. ADA price declined below the $0.650 and $0.620 levels to enter a bearish zone.
It even declined below $0.580 and tested $0.560. A low is formed at $0.5592 and the price is consolidating losses. It tested the 23.6% Fib retracement level of the downward move from the $0.6701 swing high to the $0.5592 low.
ADA price is now trading below $0.620 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.6010 zone. There is also a key bearish trend line forming with resistance at $0.6008 on the 4-hour chart of the ADA/USD pair.
The first resistance is near $0.6150 or the 50% Fib retracement level of the downward move from the $0.6701 swing high to the $0.5592 low. The next key resistance might be $0.6280. If there is a close above the $0.6280 resistance, the price could start a strong rally.
Source: ADAUSD on TradingView.com
In the stated case, the price could rise toward the $0.6550 region. Any more gains might call for a move toward $0.670.
More Losses in ADA?
If Cardano’s price fails to climb above the $0.6150 resistance level, it could continue to move down. Immediate support on the downside is near the $0.560 level.
The next major support is near the $0.520 level. A downside break below the $0.520 level could open the doors for a test of $0.50. The next major support is near the $0.4880 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 – $0.5600, $0.5200, and $0.4880.
Major Resistance Levels – $0.6150, $0.6280, and $0.6700.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
