- 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.
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