Cardano Price Technical Analysis – ADA/USD to Decline Further

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Key Highlights

  • ADA price declined recently after forming a high near the $0.4185 level against the US Dollar (tethered).
  • There was a break below a major bullish trend line with support at $0.3850 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
  • The pair is currently holding the $0.3600 support, but it remains at a risk of more declines.

Cardano price is under bearish pressure against the US Dollar and Bitcoin. ADA/USD could break the $0.3600 support and decline further in the near term.

Cardano Price Downtrend

There was a slight upside move in ADA price above $0.4000 this past week against the US Dollar. The price traded as high as $0.4185 and it later started a downside move. It declined and broke the $0.4000 support. It also traded below $0.3800 and the 14 hourly simple moving average, which is a negative sign. Moreover, there was a break below a major bullish trend line with support at $0.3850 on the hourly chart of the ADA/USD pair.

The pair traded towards the $0.3600 support and formed a low at $0.3601. It corrected higher and moved above the 23.6% Fib retracement level of the last decline from the $0.4185 high to $0.3601. However, the pair is finding it difficult to move above the $0.3800 resistance. Moreover, the 38.2% Fib retracement level of the last decline from the $0.4185 high to $0.3601 at $0.3824 is also a major resistance. There is also a connecting bearish trend line forming with resistance at $0.3800.

Cardano Price Technical Analysis ADA USD

Therefore, there is clearly a major resistance forming near $0.3800. ADA price has to move above $0.3800 to retest $0.4000. On the downside, the $0.3600 support holds a lot of importance, which must hold to avoid further declines.

Hourly MACD – The MACD for ADA/USD is slightly placed in the bullish zone.

Hourly RSI – The RSI for ADA/USD is moving higher towards the 50 level.

Major Support Level – $0.3600

Major Resistance Level – $0.3800

 

Charts courtesy – Cryptowat, Bittrex

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.



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