Cardano (ADA) is moving lower below the $0.620 resistance zone. ADA could gain bearish momentum and decline toward the $0.50 support.
ADA price is slowly moving lower from the $0.670 zone.
The price is trading below $0.620 and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance at $0.6008 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
The pair could attempt a fresh increase if the bulls remain active above the $0.560 support.
Cardano Price Reaches Key Support
In the past few days, Cardano saw a steady decline from the $0.670 resistance zone, like Bitcoin and Ethereum. ADA price declined below the $0.650 and $0.620 levels to enter a bearish zone.
It even declined below $0.580 and tested $0.560. A low is formed at $0.5592 and the price is consolidating losses. It tested the 23.6% Fib retracement level of the downward move from the $0.6701 swing high to the $0.5592 low.
ADA price is now trading below $0.620 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.6010 zone. There is also a key bearish trend line forming with resistance at $0.6008 on the 4-hour chart of the ADA/USD pair.
The first resistance is near $0.6150 or the 50% Fib retracement level of the downward move from the $0.6701 swing high to the $0.5592 low. The next key resistance might be $0.6280. If there is a close above the $0.6280 resistance, the price could start a strong rally.
Source: ADAUSD on TradingView.com
In the stated case, the price could rise toward the $0.6550 region. Any more gains might call for a move toward $0.670.
More Losses in ADA?
If Cardano’s price fails to climb above the $0.6150 resistance level, it could continue to move down. Immediate support on the downside is near the $0.560 level.
The next major support is near the $0.520 level. A downside break below the $0.520 level could open the doors for a test of $0.50. The next major support is near the $0.4880 level.
Technical Indicators
4 hours 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.
Major Support Levels – $0.5600, $0.5200, and $0.4880.
Major Resistance Levels – $0.6150, $0.6280, and $0.6700.
