Cardano Faces Resistance Near $0.450, Begins Decline
After experiencing a period of growth, Cardano encountered resistance close to the $0.450 mark and entered a phase of decline. The ADA token reached a temporary peak and began to retreat below the $0.425 level. Furthermore, the drop in Ethereum’s value caused Cardano to slip even further below the $0.400 support level.
Following this decline, a bottom was established around $0.3919, and the price is currently consolidating its losses with a bearish inclination. To add to this, a significant bearish trend line is taking shape with a resistance point at $0.4060 on the hourly chart of the ADA/USD pair.
Presently, the Cardano price sits below $0.4100 and the 100-hourly simple moving average. In the event of a recovery, the price is likely to encounter hurdles around the $0.4050 threshold, as well as the 50% Fibonacci retracement level between the downswing from the $0.4211 peak to the $0.3919 low.
- The initial obstacle is at approximately $0.4150 or the 76.4% Fibonacci retracement level between the downswing from the $0.4211 peak to the $0.3919 low.
- Following this is the next significant hurdle at $0.4220. Should the price surpass the $0.4220 resistance level, a robust upsurge could be expected. Consequently, the price might advance towards the $0.4450 vicinity, with further gains potentially leading to an ascent towards $0.4500.
Possible Further Decline in ADA Price
In the scenario where Cardano’s price fails to breach the $0.4050 resistance point, a continuation of the downwards trend is likely. Initial support during this decline would be found near the $0.3920 level.
A more significant support level looms close to the $0.3800 mark, and a breach below this level may pave the way for a test of $0.3650. Following this, the next crucial support sits neighboring the $0.3500 point, where bullish activity may arise to defend this level.
Analysis of Technical Indicators
- Hourly MACD – The MACD readings for ADA/USD are indicating an increase in bearish momentum.
- Hourly RSI (Relative Strength Index) – The RSI for ADA/USD has dipped below the 50 level, signifying a downward trend.
- Crucial Support Levels – $0.3920 and $0.3800.
- Key Resistance Levels – $0.4050 and $0.4150.
Hot Take: Stay Cautious Amidst Volatility 📉
Considering the current market conditions and price movements, it is advisable to remain cautious when navigating the volatile world of cryptocurrencies. As Cardano faces resistance and potential further declines, investors should monitor the price levels closely and make informed decisions based on market analysis and indicators to mitigate risks effectively. By staying updated with the latest developments and trends in the cryptocurrency space, you can adapt your strategies to navigate the fluctuations more effectively and make prudent investment choices.
Sources:
Kraken
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