The Cardano (ADA) price has recently experienced a fresh decline, breaking below the crucial $0.3550 level. Currently, ADA is consolidating its position above the $0.3400 mark, and there is a possibility of a recovery wave on the horizon. Let’s delve into the details of the current market trend and the potential future movements of ADA.
Current Market Analysis
- The ADA price initiated a downward trend, slipping below the $0.3500 support threshold.
- The cryptocurrency is trading under the $0.3550 mark and remains below the 100-hourly simple moving average.
- A significant break occurred below a key bullish trend line with support at $0.3600 on the hourly chart of the ADA/USD pair, sourced from Kraken.
- The pair might attempt a recovery wave if it successfully surpasses the $0.3585 resistance zone.
Cardano Price Consolidates Losses
After testing the $0.3685 resistance, Cardano faced challenges in maintaining upward momentum. This led to the formation of a short-term top, initiating a fresh decline similar to market movements seen in Bitcoin and Ethereum. The price witnessed a fall below the pivotal support levels of $0.3550 and $0.3500. Additionally, there was a break beneath a key bullish trendline that had support around $0.3600 on the hourly ADA/USD chart.
The price further declined below $0.3440 before finding support from the bulls, forming a low at $0.3420. Subsequently, ADA began to correct its losses, experiencing a minor upward move past the $0.3480 level. The price has managed to clear the 23.6% Fibonacci retracement level from the $0.3685 swing high to the $0.3420 low, indicating a potential recovery.
Cardano’s price is presently trading beneath the $0.3550 mark and lags behind the 100-hourly simple moving average. On the upside, ADA may encounter resistance near the $0.3550 zone or at the 50% Fibonacci retracement level of the downward move from the $0.3685 swing high to the $0.3420 low. The initial resistance is pegged at around $0.3585, with the next significant resistance anticipated at $0.3685.
Prospects of a Strong Rally
If ADA manages to close above the $0.3685 resistance, it could trigger a robust rally. Under such circumstances, the price might surge towards the $0.3780 region. Continued gains could potentially drive the price further to approach the $0.3950 mark.
Potential for Another Decline in ADA
Conversely, if Cardano’s price fails to breach the $0.3550 resistance level, there is a risk of another decline. Immediate support on the downside is located near the $0.3480 level. The next substantial support lies near the $0.3420 level. A downward break below this point could pave the way for testing the $0.3250 level. Further declines might encounter major support near $0.3120, where bulls are expected to emerge and provide buying pressure.
Technical Indicators
- Hourly MACD: The MACD for ADA/USD is currently losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index): The RSI for ADA/USD has dropped below the 50 level, signaling bearish sentiment.
- Major Support Levels: $0.3450 and $0.3420.
- Major Resistance Levels: $0.3550 and $0.3685.
In summary, Cardano’s price is at a critical juncture, hovering between potential recovery and further decline. Traders and investors should closely monitor the resistance and support levels outlined above to gauge the cryptocurrency’s next movements.
