Cardano (ADA) Pressure Mounts—More Downside on the Horizon?

Cardano price started a fresh decline from the $0.680 zone. ADA is consolidating near $0.620 and remains at risk of more losses.

• ADA price started a recovery wave from the $0.5850 zone.
• The price is trading below $0.640 and the 100-hourly simple moving average.
• There is a connecting bearish trend line forming with resistance at $0.6350 on the hourly chart of the ADA/USD pair (data source from Kraken).
• The pair could start another increase if it clears the $0.640 resistance zone.

Cardano Price Faces Resistance

In the past few sessions, Cardano saw a fresh decline from the $0.680 level, like Bitcoin and Ethereum. ADA declined below the $0.650 and $0.640 support levels.

A low was formed at $0.6040 and the price is now consolidating losses. There was a minor move above the $0.6120 level. The price tested the 23.6% Fib retracement level of the recent decline from the $0.6481 swing high to the $0.6040 low.

Cardano price is now trading below $0.640 and the 100-hourly simple moving average. On the upside, the price might face resistance near the $0.6260 zone and the 50% Fib retracement level of the recent decline from the $0.6481 swing high to the $0.6040 low.

The first resistance is near $0.6350. There is also a connecting bearish trend line forming with resistance at $0.6350 on the hourly chart of the ADA/USD pair. The next key resistance might be $0.6480.

If there is a close above the $0.6480 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.680 region. Any more gains might call for a move toward $0.70 in the near term.

Another Drop in ADA?

If Cardano’s price fails to climb above the $0.6350 resistance level, it could start another decline. Immediate support on the downside is near the $0.6040 level.

The next major support is near the $0.60 level. A downside break below the $0.60 level could open the doors for a test of $0.580. The next major support is near the $0.5550 level where the bulls might emerge.

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.

Major Support Levels – $0.6040 and $0.580.

Major Resistance Levels – $0.6350 and $0.6480.

Source