Cardano (ADA) Faces Recent Drop: Key Factors Behind the Downtrend

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Cardano price did not exceed USD 0.40 and began another decline. ADA is currently trading below $0.3850 and may see further declines in the near future.

  • ADA price started a fresh decline and reached below USD 0.3880.
  • The price is trading below $0.3850 and the 100-hour uncomplicated moving average.
  • There was a break below a key uptrend line with support at $0.3845 on the hourly chart of ADA/USD (data source from Kraken).
  • The pair may extend losses and test the $0.370 support zone.

Cardano prices are falling again

Over the past few days, Cardano has attempted a rebound wave above the $0.3650 zone, just like Bitcoin and Ethereum. However, ADA failed to break through the $0.40 resistance zone. The high was formed at USD 0.3967 and the price began a fresh decline.

There was a move below the $0.3880 and $0.3865 support levels. The price fell below the 23.6% Fib retracement level of the up move from the $0.3620 low to the $0.3967 high. There was also a breakout below the key bullish trendline with support at $0.3845 on the hourly chart of the ADA/USD pair.

ADA is currently trading below $0.3850 and the 100-hour uncomplicated moving average. If there is another upward move, the price may encounter resistance near the $0.3850 zone.

The first resistance is located near USD 0.3880. The next key resistance could be the $0.40 level. If there is a close above the resistance at $0.40, the price could begin a robust rally. In the given case, the price may escalate towards the USD 0.4150 region. Any further gains may require a move towards $0.4250.

More ADA flaws?

If Cardano price fails to break above the resistance level at $0.3850, it may continue to decline. Immediate downside support is located near the $0.3795 level or the 50% Fib retracement level for an upward move from the low of $0.3620 to the high of $0.3967.

The next crucial support is near the $0.370 level. A downside break below the $0.370 level could open the door to a test of the $0.350 level. The next crucial support is near the USD 0.3350 level.

Technical indicators

Hourly MACD – MACD for ADA/USD is gaining momentum in a bearish zone.

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

Major support levels – $0.3790, $0.370 and $0.350.

Major resistance levels – USD 0.3880 and USD 0.400.

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