Cardano (ADA) has been facing resistance below the $0.500 zone, indicating a potential bearish momentum ahead. The price of ADA is currently below both $0.500 and the 100 simple moving average (4 hours). A bearish trend line has been identified with resistance at $0.4740 on the 4-hour chart of the ADA/USD pair.
Recent Market Trends
In recent days, Cardano experienced a gradual decline from the $0.520 resistance zone, similar to Bitcoin and Ethereum. The price of ADA fell below $0.4950 and $0.500 levels, entering a bearish territory. This downward movement led to a breach of the 50% Fib retracement level from the $0.4000 swing low to the $0.5201 high, dropping below $0.4650 and testing $0.450. The current price of ADA is trading below $0.500 and the 100 simple moving average (4 hours), with a bearish trend line resistance at $0.4740 on the 4-hour chart.
While bulls show some activity near the $0.450 zone and the 61.8% Fib retracement level, immediate resistance levels are expected near $0.4740, the 100 simple moving average (4 hours), and the trend line. Further resistance levels are at $0.4920 and $0.500, marking the crucial level for a potential rally if breached successfully. On the flip side, if the price fails to surpass the $0.4740 resistance level and the 100 simple moving average (4 hours), a continued downward movement is possible.
Technical Indicators
The MACD for ADA/USD is currently gaining momentum in the bearish zone over the 4-hour chart, signaling a potential downward trend. Additionally, the RSI for ADA/USD is below the 50 level, indicating a bearish sentiment in the market.
Immediate support for Cardano is expected near the $0.450 level, followed by a major support level near $0.4280. A break below $0.4280 could lead to a test of $0.40, with further support near $0.3880. On the contrary, major resistance levels for ADA are at $0.4740, $0.5000, and $0.5200.
Disclaimer
It is essential to note that this analysis is provided for educational purposes only and does not reflect the opinions of NewsBTC regarding investment decisions. Investing always carries risks, and it is advisable to conduct thorough research before making any financial commitments. Any reliance on the information provided in this article is done at the reader’s discretion and risk.