Cardano price started a major drop after it broke the key $0.4200 support. ADA could continue to decline unless it gets established above the $0.50 pivot level.
ADA price is showing many bearish signs below the $0.420 support against the US Dollar. The price is trading well below $0.400 and the 100 Simple Moving Average (4-hours). There are two bearish trend lines forming with resistance at $0.3700 and $0.3880 on the ADA/USD 4-hours chart (data feed from Kraken). The pair could continue to move below the $0.3500 support zone.
Cardano (ADA) Price Signals Bearish Wave
In the past few days, the price of cardano has seen a steady decline from well above the $0.5000 level. The bears were able to push the price below the key support levels of $0.450 and $0.420.
The decline gained pace below the $0.400 level and the 100 simple moving average (4-hours). A bottom was formed near the $0.3500 level and the price started a minor upward move, similar to bitcoin and ethereum. ADA price broke above the $0.3620 and $0.3700 levels.
There was a move above the 23.6% Fibonacci retracement level of the downward move from the $0.4265 high to $0.3500 low. However, the price was unable to continue higher and settled below $0.3800.
On the upside, immediate resistance is near the $0.3700 zone. There are also two bearish trend lines forming with resistance at $0.3700 and $0.3880 on the ADA/USD 4-hours chart. The first major resistance is forming near the $0.3880 zone.
Source: ADAUSD on TradingView.com
The 50% Fib retracement level of the downward move from the $0.4265 high to $0.3500 low is also near $0.3880. Major resistance is now forming near the $0.4080 level and the 100 simple moving average (4-hours). If there is a bullish breakout above the $0.408 and $0.420 resistance levels, the price could start a sharp rise. In the given case, the price could steadily rise towards the $0.50 level.
If cardano price fails to rally above the $0.3880 and $0.400 resistance levels, it could continue to slide lower. An immediate support on the downside is near the $0.360 level.
Major support is near the $0.350 level. A break below the $0.350 level could open the doors for a further drop towards $0.320. The next major support is near the $0.300 level.
4 hours MACD – The MACD for ADA/USD is slowly losing momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels: $0.360, $0.350 and $0.300.
Major Resistance Levels – $0.3700, $0.388 and $0.408.
This post more pain to come
was published first on https://www.newsbtc.com/analysis/ada/cardano-ada-price-prediction-pain/