Cardano’s ADA Price Faces Support Level
Despite a period of growth, Cardano’s ADA price has failed to break through the resistance zone at $0.2650. As a result, the price has started to decline along with other cryptocurrencies such as Bitcoin and Ethereum.
ADA dropped below the $0.255 support level and broke a key bullish trend line at $0.259. The decline continued below the $0.250 support and the 100 simple moving average (4 hours).
The price has now formed a low near $0.2450 and is currently consolidating its losses. ADA is trading below $0.250 and the 100 simple moving average (4 hours). The immediate resistance lies around the $0.248 zone.
A descending channel is also forming with resistance near $0.2480 on the 4-hour chart of the ADA/USD pair. The first significant resistance is at $0.250 or the 23.6% Fibonacci retracement level from the swing high of $0.2668 to the low of $0.2450.
The next key resistance level could be at $0.2560, which is the 50% Fibonacci retracement level from the swing high to the low mentioned earlier. If there is a close above this resistance, ADA’s price could see a decent increase towards the $0.285 resistance zone.
Potential for Further Losses in ADA
If ADA fails to surpass the $0.250 resistance level, it could continue its downward movement. Immediate support on the downside can be found near the $0.245 level.
The next major support level is around $0.242, and if this level is broken, it may lead to a sharp decline towards $0.220. The subsequent significant support level is near $0.200.
Technical indicators show that the MACD for ADA/USD on the 4-hour chart is losing momentum in the bearish zone. Additionally, the RSI (Relative Strength Index) has dropped below the 50 level.
Major support levels to watch are $0.245, $0.242, and $0.220, while major resistance levels are $0.250, $0.255, and $0.285.
Hot Take: ADA Faces Resistance at Key Level
Cardano’s ADA price is currently facing resistance at the $0.250 level after failing to break through the previous resistance zone at $0.2650. If ADA manages to surpass this resistance, it could see a significant increase towards the $0.285 level. However, if it fails to do so, there is a possibility of further losses with support levels at $0.245 and $0.242. Traders should closely monitor these key levels to determine the future direction of ADA’s price.
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