ADA Price (Cardano) Close Below $0.38 Could Spark Larger Degree Correction

Cardano’s price started a fresh decline from the $0.460 resistance. ADA could decline further if there is a clear move below the $0.38 support.

  • ADA price declined heavily from the $0.460 resistance against the US dollar.
  • The price is trading below $0.400 and the 100 simple moving average (4 hours).
  • There was a break below a key bullish trend line with support near $0.4150 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
  • The pair could start a recovery wave if it clears the $0.400 resistance zone.

Cardano’s ADA Price Revisits Key Support

After a decent increase, Cardano’s price faced resistance near the $0.460 zone. The price faced an increase in selling pressure and started a fresh decline below $0.420, similar to Bitcoin and Ethereum.

There was a clear move below the $0.40 support zone. Besides, there was a break below a key bullish trend line with support near $0.4150 on the 4-hour chart of the ADA/USD pair. The pair even tested the $0.380 support zone.

A low is formed near $0.3803 and the price is now consolidating losses. It is trading below $0.400 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.400 zone. It is near the 23.6% Fib retracement level of the main decline from the $0.4616 swing high to the 0.3803 low.

The next major resistance is forming near the $0.410 zone or the 100 simple moving average (4 hours). If there is an upside break above the $0.400 and $0.410 resistance levels, the price could start a decent increase.

Source: ADAUSD on TradingView.com

In the stated case, the price could rise steadily toward the $0.41 level or the 50% Fib retracement level of the main decline from the $0.4616 swing high to the 0.3803 low. The next key resistance might be $0.432.

More Losses?

If Cardano’s price fails to climb above the $0.400 and $0.410 resistance levels, it could continue to move down. Immediate support on the downside is near the $0.380 level.

The next major support is near the $0.372 level. A downside break below the $0.372 level could open the doors for a fresh decline toward $0.350. The next major support is near the $0.325 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 – $0.380, $0.372, and $0.350.

Major Resistance Levels – $0.400, $0.410, and $0.420.

Source: Read Full Article

Crypto Comments Off on ADA Price (Cardano) Close Below $0.38 Could Spark Larger Degree Correction