ADA Price (Cardano) Plunge To $0.32 On The Horizon As Bulls Show Weak Hands
2 min read
Cardano’s price started a fresh decline from the $0.40 resistance. ADA could decline further if there is a clear move below the $0.35 support.
- ADA price is showing bearish signs and trading above $0.35 against the US dollar.
- The price is trading below $0.388 and the 100 simple moving average (4 hours).
- There is a major bearish trend line forming with resistance near $0.380 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could start a decent increase if it clears the $0.380 resistance zone.
Cardano’s ADA Price Extends Decline
This past week, Cardano’s price made a couple of attempts to clear the $0.400 resistance. However, the bulls failed and the price reacted to the downside below the $0.388 support.
The price declined below the $0.380 and $0.365 support levels. Finally, it tested the $0.355 support. A low is formed near $0.3534 and the price is now attempting a minor upside correction, similar to Bitcoin and Ethereum.
ADA is still trading below $0.388 and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $0.380 on the 4-hour chart of the ADA/USD pair. On the upside, immediate resistance is near the $0.375 zone or the 50% Fib retracement level of the recent drop from the $0.3978 swing high to the 0.3534 low.
The next major resistance is forming near the $0.380 zone or the trend line. It is close to the 61.8% Fib retracement level of the recent drop from the $0.3978 swing high to the 0.3534 low.
Source: ADAUSD on TradingView.com
If there is an upside break above the $0.375 and $0.380 resistance levels, the price could start a decent increase. In the stated case, the price could even surpass the $0.388 resistance zone. The next key resistance might be $0.400, above which it could test $0.42.
More Losses?
If Cardano’s price fails to climb above the $0.375 and $0.380 resistance levels, it could continue to move down. Immediate support on the downside is near the $0.355 level.
The next major support is near the $0.350 level. A downside break below the $0.350 level could open the doors for a fresh decline toward $0.320. The next major support is near the $0.312 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing 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 – $0.355, $0.350, and $0.320.
Major Resistance Levels – $0.375, $0.380, and $0.400.
