Cardano price is struggling below the $0.30 zone. ADA could start a sharp decline if it breaks the $0.2765 support zone in the near term.
- The ADA price is falling below the $0.292 support against the US dollar.
- The price is trading below $0.290 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $0.2815 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could fall sharply if the bulls fail to protect the $0.2765 support zone.
Cardano’s ADA award faces a tough task
This past week, the price of Cardano attempted to climb above the $0.285 zone again. The price climbed above the $0.295 resistance zone, but the bears were active near the $0.30 zone.
A high was formed near $0.3015 before another drop. The price dropped below the $0.285 level and it tested the $0.2765 support. It is now consolidating losses below $0.292, similar to Bitcoin and Ethereum.
There was a small recovery wave above the 50% Fib retracement level from the downward move from the $0.3013 swing high to the $0.2754 low. However, the bears were active above the $0.290 level. ADA is now trading below $0.290 and the 100 simple moving average (4 hours).
A major bullish trendline is also forming with support near $0.2815 on the 4-hour chart of the ADA/USD pair. On the upside, immediate resistance is near the $0.288 zone and the 100 simple moving average (4 hours).
Source: ADAUSD at TradingView.com
The first major resistance forms near the $0.292 zone or the 61.8% Fib retracement level of the downward move from the $0.3013 swing high to the $0.2754 low. The next key resistance could be at $0.30. If there is a close above the $0.30 resistance, the price could start a decent rise. In the said case, the price might rise towards the $0.320 resistance zone.
Lose more in ADA?
If the price of Cardano fails to break above the $0.292 resistance level, it could drop further. Immediate support on the downside is near the $0.2815 level and trendline.
The next major support is near the $0.2765 level. A downside break below the $0.2765 level could open the door for a sharp fresh decline towards $0.255. The next major support is near the $0.232 level.
Technical indicators
4am MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Main Support Levels – $0.2815, $0.2765 and $0.255.
Key resistance levels – $0.288, $0.292 and $0.300.
