Cardano (ADA) Approaching Crucial Support, Decision Time For Buyers

  • ADA price failed to gain momentum above the $0.0460 resistance and declined against the US Dollar.
  • There is a crucial bullish trend line in place with support at $0.0420 on the 4-hours chart (data feed via Kraken).
  • The price must stay above the $0.0420 support to climb higher once again in the near term.

Cardano price is struggling to hold gains against the US Dollar and Bitcoin. ADA remains at a risk of more losses towards the $0.0410 and $0.0400 levels in the coming sessions.

Cardano Price Analysis

After trading as low as $0.0391, cardano price started a decent upward move against the US Dollar. The ADA/USD pair traded above the $0.0400 and $0.0420 resistance levels. The price even broke the $0.0440 resistance and the 55 simple moving average (4-hours). Besides, there was a break above the 23.6% Fibonacci retracement level of the last slide from the $0.0545 high to $0.0390 swing low. However, the recovery was capped by the $0.0460 and $0.0465 resistance levels.

More importantly, the price even failed to test the 50% Fibonacci retracement level of the last slide from the $0.0545 high to $0.0390 swing low. As a result, there was a downside reaction below the $0.0450 support. Sellers pushed the price below the $0.0435 level and the 55 simple moving average (4-hours). On the downside, there are a few key supports near the $0.0420 level. Besides, there is a crucial bullish trend line in place with support at $0.0420 on the 4-hours chart of ADA/USD. Therefore, a downside break below the trend line could open the doors for more losses towards the $0.0400 support.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is clearly struggling to hold key supports above $0.0420. If it declines sharply below $0.0420, there is even a risk of more losses below $0.0400. On the other hand, an initial resistance is at $0.0440. Having said that, a close above $0.0460 is needed for a decent upward move towards $0.0500.

Technical Indicators

4-hours MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.

4-hours RSI – The RSI for ADA/USD is now well below the 50 level, with a bearish angle.

Key Support Level – $0.0420

Key Resistance Level – $0.0460

The post Cardano (ADA) Approaching Crucial Support, Decision Time For Buyers appeared first on Live Bitcoin News.

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Author: Aayush Jindal


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