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ADA Price Consolidates Below $0.30 – What Could Trigger A Sharp Decline?
Cardano’s price is struggling below the $0.30 zone. ADA could start a sharp decline if it breaks the $0.2765 support zone in the near term.
Cardano’s ADA Price Faces Uphill Task
This past week, Cardano’s price attempted a fresh increase above the $0.285 zone. The price climbed above the $0.295 resistance zone but the bears were active near the $0.30 zone.
A high was formed near $0.3015 before there was a fresh decline. The price declined below the $0.285 level and tested the $0.2765 support. It is now consolidating losses below $0.292, similar to Bitcoin and Ethereum.
There was a minor recovery wave above the 50% Fib retracement level of the downward move from the $0.3013 swing high to the $0.2754 low. However, the bears were active above the $0.290 level. ADA is now trading below $0.290 and the 100 simple moving average (4 hours).
There is also a major bullish trend line forming with support near $0.2815 on the 4-hour chart of the ADA/USD pair. On the upside, immediate resistance is near the $0.288 zone and the 100 simple moving average (4 hours).
Source: ADAUSD on TradingView.com
The first major resistance is forming near the $0.292 zone or the 61.8% Fib retracement level of the downward move from the $0.3013 swing high to the $0.2754 low. The next key resistance might be $0.30. If there is a close above the $0.30 resistance, the price could start a decent increase. In the stated case, the price could rise toward the $0.320 resistance zone.
More Losses in ADA?
If Cardano’s price fails to climb above the $0.292 resistance level, it could continue to move down. Immediate support on the downside is near the $0.2815 level and the trend line.
The next major support is near the $0.2765 level. A downside break below the $0.2765 level could open the doors for a sharp fresh decline toward $0.255. The next major support is near the $0.232 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.2815, $0.2765, and $0.255.
Major Resistance Levels – $0.288, $0.292, and $0.300.