HomeAltcoin NewsCardano (ADA) Price Analysis: Recovery Could be Capped Near $1.40

Cardano (ADA) Price Analysis: Recovery Could be Capped Near $1.40

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  • ADA price started a fresh decline from well above the $1.50 level against the US Dollar.
  • The price is now trading well below $1.45 and the 55 simple moving average (4-hours).
  • There is a major bearish trend line forming with resistance near $1.38 on the 4-hours chart (data feed via Bitfinex).
  • The price is recovering, but it is likely to face sellers near the $1.38 and $1.40 levels.

Cardano price is trading in a bearish zone below $1.40 against the US Dollar, similar to bitcoin. ADA price could continue to move down below $1.20 and $1.15.

Cardano Price Analysis

This week, cardano price followed a bearish path from well above $1.40 against the US Dollar. The ADA/USD pair declined below $1.30 and moved further into a bearish zone.

There was also a break below $1.20 and a close below the 55 simple moving average (4-hours). The price traded as low as $1.141 before it started an upside correction. There was a recovery wave above the $1.20 and $1.22 levels. The price climbed above the 23.6% Fib retracement level of the recent decline from the $1.466 high to $1.14 low.

However, the price is still trading well below $1.45 and the 55 simple moving average (4-hours). An immediate resistance is near the $1.30 level. It is close to the 50% Fib retracement level of the recent decline from the $1.466 high to $1.14 low.

The next major resistance is near the $1.38 level. There is also a major bearish trend line forming with resistance near $1.38 on the 4-hours chart.

A close above the $1.38 and $1.40 levels could open the doors for a steady increase. On the downside, there is a decent support forming near $1.20. The next key support is near the $1.15 level. Any more losses might call for a move towards the $1.10 support zone.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is clearly trading well below $1.40 and the 55 simple moving average (4-hours). Overall, the price is recovering, but it is likely to face sellers near the $1.38 and $1.40 levels.

Technical Indicators

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

4 hours RSI – The RSI for ADA/USD is now well below the 50 level.

Key Support Levels – $1.20 and $1.15.

Key Resistance Levels – $1.38 and $1.40.

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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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