More Pain Yet To Come

Cardano’s price started a major decline after it broke the key $0.4200 support. ADA could continue to move down unless it settles above the $0.50 pivot level.

• ADA price is showing a lot of 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 4-hours chart of the ADA/USD pair (data source from Kraken).
• The pair could continue to move down below the $0.3500 support zone.

Cardano (ADA) Price Signals Bearish Wave

In the past few days, cardano’s price saw a steady decline from well above the $0.5000 level. The bears were able to push the price below the key $0.450 and $0.420 support levels.

The decline gained pace below the $0.400 level and the 100 simple moving average (4-hours). A low was formed near the $0.3500 level and the price started a minor upward move, similar to bitcoin and ethereum. ADA price climbed above the $0.3620 and $0.3700 levels.

There was a move above the 23.6% Fib retracement level of the downward move from the $0.4265 swing high to $0.3500 low. However, the price failed to continue higher and settled below $0.3800.

On the upside, an 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 4-hours chart of the ADA/USD pair. 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 swing high to $0.3500 low is also near $0.3880. The main resistance is now forming near the $0.4080 level and the 100 simple moving average (4-hours). If there is an upside break above the $0.408 and $0.420 resistance levels, the price could start a strong increase. In the stated case, the price could rise steadily towards the $0.50 level.

More Pain?

If cardano’s price fails to recover above the $0.3880 and $0.400 resistance levels, it could continue to move down. An immediate support on the downside is near the $0.360 level.

The main support is near the $0.350 level. A downside break below the $0.350 level could open the doors for a fresh decline towards $0.320. The next major support is near the $0.300 level.

Technical Indicators

4-hours MACD – The MACD for ADA/USD is slowly losing momentum in the bullish zone.

4-hours RSI (Relative Strength Index) – The…