- ADA price failed to correct higher and it declined below the $0.3500 support level against the US Dollar (tethered).
- There is a key bearish trend line forming with resistance at $0.3650 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair is currently trading below the $0.3500 level and it could decline further in the near term.
Cardano price extended its decline against the US Dollar and Bitcoin. ADA/USD is now in a bearish zone and it may continue to decline towards $0.3000.
Cardano Price Resistance
In the last analysis, we discussed the chances of further declines below $0.3600 in ADA price against the US Dollar. The price failed to move above the $0.4000 resistance and started a downside move. It declined sharply and broke the $0.3600 and $0.3500 support levels. There was a lot of pressure on ADA, which pushed its price below the $0.3400 level as well.
A low was formed near $0.3300 from where the price is currently attempting an upside correction. It tested the 23.6 Fib retracement level of the last decline from the $0.3872 high to $0.3300 low. However, a recovery in ADA won’t be easy as the price is now well below $0.3500. On the upside, there is a key bearish trend line forming with resistance at $0.3650 on the hourly chart of the ADA/USD. The trend line resistance is very important since it is near the 50% Fib retracement level of the last decline from the $0.3872 high to $0.3300 low. As long as the price is below the $0.3500 and $0.3600 levels, it remains at a risk of more declines.
On the downside, the recent low of $0.3300 is a decent support. A break and close below $0.3300 could push the price towards the $0.3000 level.
Hourly MACD – The MACD for ADA/USD is showing a low of bearish signs.
Hourly RSI – The RSI for ADA/USD is now near the oversold levels.
Major Support Level – $0.3300
Major Resistance Level – $0.3600
Charts courtesy – Cryptowat, Bittrex