Cardano Price Analysis: ADA/USD at Risk of More Declines

Key Highlights

  • ADA price is currently under pressure and is just holding the $0.2020 support against the US Dollar (tethered).
  • There is a major bearish trend line formed with current resistance at $0.2100 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
  • The pair could decline further if sellers succeed in pushing the price below the $0.2000 handle.

Cardano price is at risk of a downside break against the US Dollar and Bitcoin. ADA/USD may perhaps break the $0.2000 level to initiate further declines.

Cardano Price Analysis

After a decent upside move, ADA price faced a strong resistance near the $0.2350 level against the US Dollar. The price formed a top around $0.2360 and started a downside correction. It declined and moved below the $0.2200 and $0.2100 support levels. It almost tested the $0.2000 handle a low was formed at $0.2020. Later, the price recovered, but upsides were capped by the $0.2200 resistance.

Moreover, the 100 hourly simple moving average also prevented upsides above $0.2200. A fresh downside wave was initiated and the price declined below the $0.2100 level. There was also a break below the 76.4% Fib retracement level of the last wave from the $0.2030 low to $0.2220 high. If the price continues to move down, it could break the $0.2020 low and the $0.2000 support. The next support sits around the 1.236 Fib extension level of the last wave from the $0.2030 low to $0.2220 high at $0.1987. Below this, the price may perhaps trade towards the $0.1800 level.

The chart indicates that there is a major bearish trend line formed with current resistance at $0.2100 on the hourly timeframe of the ADA/USD pair. A break and close above the trend line and $0.2110 is needed to avoid further declines in the near term.

Hourly MACD – The MACD for ADA/USD has moved back in a bearish zone.

Hourly RSI – The RSI for ADA/USD is now well below the 50 level.

Major Support Level – $0.2000

Major Resistance Level – $0.2100

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