Cardano price recently faced a fresh decline after being rejected at the $0.3850 resistance level. Currently, ADA is consolidating above $0.3350 and could potentially make a recovery attempt in the near future.
The downward movement in ADA price started with a break below the $0.3550 support level. As of now, the price is trading below $0.350 and the 100-hourly simple moving average. On the hourly chart of the ADA/USD pair, there is a short-term bearish trend line forming with resistance at $0.3480. If the pair remains below the $0.360 resistance zone, it could continue to move downward.
Cardano Price Dips Again
After testing the $0.4150 resistance level, Cardano struggled to push higher. ADA formed a short-term peak and began a fresh decline, along with Bitcoin and Ethereum. The price dropped below both the $0.3850 and $0.3650 support levels. It even fell below $0.350 before finding support at $0.3360.
Currently, ADA price is consolidating its losses, with a slight move above the $0.3420 level. The price tested the 23.6% Fibonacci retracement level of the downward move from the $0.3853 high to the $0.3360 low. However, the price is still trading below $0.360 and the 100-hourly simple moving average, indicating a bearish trend.
On the upside, the price may face resistance around the $0.3500 zone. Additionally, a short-term bearish trend line with resistance at $0.3480 is forming on the hourly chart of the ADA/USD pair. The first major resistance level is at $0.360, and if the price manages to break above it, the next target could be $0.3740. A successful close above $0.3740 might trigger a strong rally towards the $0.400 region, potentially even reaching $0.4150.
More Downsides in ADA?
If Cardano fails to surpass the $0.3500 resistance level, it could see another downward movement. Immediate support is located around $0.340, with the next major support at $0.3350. A break below $0.3350 could lead to a test of $0.3220, with significant support at the $0.300 level.
Looking at the technical indicators, the hourly MACD for ADA/USD is gaining momentum in the bearish zone, while the hourly RSI is below the 50 level. Major support levels are at $0.3400 and $0.3350, with resistance levels at $0.3500 and $0.3600.
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Conclusion
Despite the recent decline in Cardano price, there is still hope for a potential recovery if the $0.3500 resistance level is breached. However, if the price fails to break above this level, we may see further downside movement towards $0.3220. Traders should keep a close eye on key support and resistance levels to make informed trading decisions. As the cryptocurrency market remains volatile, it is essential to stay updated with the latest news and developments in the industry. Visit DeFi Daily News for more insights and analysis on the DeFi sector and stay ahead of the curve.
