Cardano (ADA) has been struggling to break above the $0.500 resistance zone, indicating a potential bearish momentum. The price of ADA is currently hovering below $0.500 and the 100 simple moving average (4 hours), setting a tone for further decline in the near future. A key bearish trend line can be observed forming with resistance at $0.4740 on the 4-hour chart of the ADA/USD pair, sourced from Kraken. If the bulls do not push the price above the $0.4280 support level, we may see ADA continuing its downward trajectory.
Over the past few days, Cardano experienced a gradual decline from the $0.520 resistance zone, aligning with the downward movement observed in Bitcoin and Ethereum. ADA’s price dropped below $0.500 and $0.4950 levels, signaling a transition into a bearish zone. The price even fell below the 50% Fib retracement level of the upward swing from $0.4000 to $0.5201 and tested $0.450. Currently, ADA is trading below $0.500 and the 100 simple moving average (4 hours), with a key resistance forming at $0.4740 on the 4-hour chart. The bulls are showing some activity near the $0.450 zone, pushing against the 61.8% Fib retracement level. Immediate resistance lies around $0.4740, with potential further resistances at $0.4920 and $0.500.
In the best-case scenario, if the price manages to surpass the $0.4740 resistance level and the 100 simple moving average (4 hours), we may see a rise towards the $0.5250 region, potentially extending to $0.5650. On the other hand, failure to break above the mentioned resistance levels could lead to a continuation of the downtrend. Immediate support sits at around $0.450, followed by a major support level at $0.4280. A break below $0.4280 could trigger further decline towards $0.40, with the next significant support level near $0.3880.
Analyzing the technical indicators, the 4-hour MACD for ADA/USD is indicating an increase in bearish momentum, while the 4-hour RSI has dropped below the 50 level, pointing towards a further downward movement. Major support levels for ADA include $0.4500, $0.4280, and $0.4000, while major resistance levels stand at $0.4740, $0.5000, and $0.5200.
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