Cardano Price Facing Bearish Momentum Below $0.265
The price of ADA is currently experiencing a bearish trend as it falls below the $0.265 level against the US dollar. However, it is still trading above $0.250 and the 100 simple moving average (4 hours).
Bearish Break Below Key Trend Line
A significant development is the break below a crucial bullish trend line with support near $0.258 on the 4-hour chart of the ADA/USD pair sourced from Kraken. This break indicates a potential downward movement for Cardano’s price.
Support at $0.250 Crucial for Fresh Increase
To initiate a new upward trend in the near future, it is vital for ADA to maintain support above the $0.250 level.
Cardano Price Trims Gains
In recent days, Cardano’s price made gains by surpassing the $0.255 level and even cleared the $0.265 resistance. However, these gains were short-lived as the price started to correct lower, following a similar trend to Bitcoin and Ethereum.
Break Below Key Support Levels
The price dropped below the important support level of $0.265 and also broke through a key bullish trend line with support near $0.258 on the 4-hour chart of ADA/USD.
ADA Testing Fib Retracement Level
Cardano is currently testing the 61.8% Fibonacci retracement level of its upward move from the swing low of $0.2426 to the high of $0.2741. Despite this correction, ADA remains above $0.250 and the 100 simple moving average (4 hours).
Source: ADAUSD on TradingView.com
Potential Resistance Levels
The immediate resistance for ADA is expected to be around the $0.258 zone, followed by a major resistance near $0.265. If the price manages to close above the $0.274 resistance, it could pave the way for a significant increase towards the $0.300 resistance zone.
More Losses in ADA?
In case Cardano fails to surpass the $0.265 resistance level, it may continue to decline further. The immediate support on the downside lies near $0.250, with the next major support at around $0.242. A break below this level could lead to a sharp decline towards $0.220, followed by another major support at $0.200.
Technical Indicators
The 4-hour MACD for ADA/USD is showing increasing momentum in the bearish zone, while the RSI (Relative Strength Index) has dropped below the 50 level.
Major Support and Resistance Levels
Major support levels for ADA are at $0.250, $0.242, and $0.220, while major resistance levels can be found at $0.265, $0.274, and $0.300.
Hot Take: Cardano’s Price Faces Resistance Amidst Bearish Momentum
The price of ADA is currently facing bearish momentum as it struggles to surpass key resistance levels. Despite trading above crucial support levels, there is a risk of further losses if it fails to break above $0.265. On the other hand, a successful close above $0.274 could lead to a significant increase. Traders should closely monitor these resistance and support levels to make informed decisions about their ADA investments.
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