HomeAltcoin NewsCardano (ADA) Price Analysis: Another Drop Before Higher?

Cardano (ADA) Price Analysis: Another Drop Before Higher?

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  • ADA price is trading below the key $0.0525 and $0.0550 resistances against the US Dollar.
  • The price is likely preparing for the next move and it could slide towards $0.0450.
  • There is a breakout pattern forming with resistance near $0.0515 on the 4-hours chart (data feed via Kraken).
  • The price could either break above the $0.0525 resistance or it might slide further towards $0.0450.

Cardano price is showing a few signs of a recovery against the US Dollar and bitcoin. Still, ADA price might decline sharply before it could bounce back above $0.0520 and $0.0550.

Cardano Price Analysis

Recently, cardano price recovered nicely from the $0.0459 swing low against the US Dollar. The ADA/USD pair climbed above the $0.0500 resistance level. Moreover, there was a close above the $0.0500 level and the 55 simple moving average (4-hours). However, the price struggled to surpass a major resistance area near the $0.0525 level. A swing high was formed near $0.0526 and the price declined below $0.0510.

The price declined below the 50% Fibonacci retracement level of the last wave from the $0.0459 low to $0.0526 high. Additionally, there was a break below the $0.0500 support and the 55 simple moving average (4-hours). On the downside, there are a few key supports near the $0.0480 and $0.0475 levels. The 76.4% Fibonacci retracement level of the last wave from the $0.0459 low to $0.0526 high might also provide support.

More importantly, there is a breakout pattern forming with resistance near $0.0515 on the 4-hours chart. An immediate resistance on the upside is near the $0.0500 level. The next resistance is near the triangle trend line at $0.0515. If there is a break above $0.0515, the price could test the main $0.0525 resistance level. To move into an uptrend and climb substantially, the price must break the $0.0525 resistance.

Conversely, if the price fails to surpass $0.0515 or $0.0525, it could decline below the $0.0475 support. The next key support is near the $0.0450 level, below which the price may perhaps drop towards the $0.0420 level.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is clearly struggling and facing many hurdles near $0.0510 and $0.0525. The next move could be either above the $0.0525 resistance or towards the $0.0450 and $0.0420 supports. The price action is slightly positive, but there could be a sharp decline below $0.0475 before the price starts a solid upward move.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is slowly reducing its bearish slope.

4 hours RSI – The RSI for ADA/USD is currently under pressure below the 50 level, with a bearish angle.

Key Support Levels – $0.0475 and $0.0450.

Key Resistance Levels – $0.0515 and $0.0525.

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Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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