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Cardano price failed to surpass the $0.40 level and started declining again. ADA is now trading below $0.3850 and may extend losses in the near term.
- ADA price started a new decline and was trading below $0.3880.
- The price is trading below $0.3850 and the 100 hourly simple moving average.
- There was a break below a major uptrend line with support at $0.3845 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could extend its losses and test the support area at $0.370.
Cardano price drops again
In the past few days, Cardano has attempted a recovery wave above the $0.3650 area Bitcoin And Ethereum. However, ADA failed to cross the $0.40 resistance area. The high was formed at $0.3967 and the price started a new decline.
There was a move below the $0.3880 and $0.3865 support levels. The price fell below the 23.6% Fibonacci retracement level of the upward move from the swing low at $0.3620 to the swing high at $0.3967. Moreover, there was a break below the major uptrend line with support at $0.3845 on the hourly chart of the ADA/USD pair.
ADA price is now trading below $0.3850 and the 100 hourly simple moving average. If there is another upward movement, the price may face resistance near the $0.3850 area.
The first resistance is located near $0.3880. The next major resistance could be at $0.40. If it closes above the $0.40 resistance level, the price may start to rise strongly. In the mentioned case, the price may rise towards the $0.4150 area. Any further gains may require a move towards $0.4250.
More downsides to the ADA?
If Cardano price fails to rise above the $0.3850 resistance level, it may continue to move lower. Immediate support on the downside is near the $0.3795 level or the 50% Fib retracement level of the upward move from the $0.3620 swing low to the $0.3967 swing high.
The next major support is near the $0.370 level. A downside break below the $0.370 level could open the doors to a test of $0.350. The next major support is near the $0.3350 level.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key Support Levels – $0.3790, $0.370, and $0.350.
Key resistance levels – $0.3880 and $0.400.
