Cardano price has started a fresh decline below the support at $0.4120. Ethereum’s decline seems to be dragging ADA down towards the support at $0.380.

• ADA price started a fresh decline from the USD 0.450 resistance zone.
• The price is trading below $0.4120 and the 100-hour basic moving average.
• On the hourly chart of the ADA/USD currency pair, a key downtrend line is forming with resistance at USD 0.4060 (data source: Kraken).
• The pair may continue its downward move and test the support zone at USD 0.380.

Cardano price points to further declines

After a steady rally, Cardano encountered sellers near the $0.450 resistance zone. ADA formed a short-term top and initiated a pullback below the $0.4250 level. Recently, Ethereum’s decline dragged it even lower below the $0.400 support.

A low is forming near $0.3919, with price consolidating losses at a bearish angle. A key bearish trendline is also forming on the hourly chart of the ADA/USD pair with resistance at $0.4060.

Cardano price is currently trading below $0.4100 and the 100-hour basic moving average. If a recovery wave occurs, the price could face resistance near the $0.4050 zone and the 50% Fibonacci retracement level of the downward move from the $0.4211 peak to the $0.3919 trough.

The first resistance is near $0.4150 or the 76.4% Fibonacci retracement level of the downside move from $0.4211 swing high to $0.3919 low. The next key resistance could be $0.4220. If the close occurs above the $0.4220 resistance, the price could start a robust rally. In this case, the price could rise towards $0.4450. Any further gains could require a move towards $0.4500.

More ADA flaws?

If Cardano price fails to break above the $0.4050 resistance level, it could continue to decline. Immediate support on the downside is located near the $0.3920 level.

The next major support is near the $0.3800 level. A break below the $0.3800 level could open the door to a test of the $0.3650 level. The next major support is near the $0.3500 level where the bulls could enter.

Technical indicators

Hourly MACD – MACD for the ADA/USD pair is gaining momentum in the downtrend zone.

Hourly RSI (Relative Strength Index) – The RSI for the ADA/USD pair is currently below the 50 level.

Major support levels – USD 0.3920 and USD 0.3800.

Major resistance levels – USD 0.4050 and USD 0.4150.