- Cardano price struggles to maintain $0.40, facing another bearish decline.
- Currently trading under $0.3850, ADA presents potential for further losses looming.
- Breaking below significant bullish support indicators on its hourly chart.
Cardano’s price dips below key resistance levels; further losses anticipated.
Cardano Price Faces Renewed Downward Pressure
Over recent days, Cardano’s attempt to rise above the $0.4000 threshold has been met with resistance, similar to Bitcoin and Ethereum’s movements. ADA could not sustain momentum, forming a recent high at $0.3967 before initiating a new downward slide.
This decline brought the price under critical support levels of $0.3880 and $0.3865. The movement broke through the 23.6% retracement level derived from the previous swing low of $0.3620 to the high at $0.3967. Additionally, ADA/USD experienced a breach below a crucial bullish trendline providing support at $0.3845 on the hourly chart.
Currently, ADA’s price trades below the $0.3850 mark and sits under the 100-hourly simple moving average. Should there be an upswing, the price is likely to encounter resistance near the $0.3850 region.
Key Resistance and Potential Bullish Scenarios
Initial resistance for ADA lies at $0.3880, with further significant resistance anticipated around the $0.4000 mark. A decisive break above $0.4000 could catalyze a robust rally, propelling prices toward $0.4150. Continued momentum beyond this could see targets in the vicinity of $0.4250.
Increased Downside Risks
Should Cardano fail to overcome the $0.3850 resistance, sustained bearish momentum is likely. Immediate support on the downside is identified near $0.3795, coinciding with the 50% Fib retracement level from the $0.3620 low to the $0.3967 peak.
The next key support threshold stands at $0.3700. If price action breaches this critical support, the pathway opens for a decline towards the $0.3500 mark, with subsequent support around $0.3350.
Technical Outlook and Indicators
The hourly MACD for ADA/USD is trending in bearish territory, indicating increased selling pressure. Concurrently, the RSI (Relative Strength Index) has dipped below the 50 mark, reinforcing the bearish sentiment.
Key Support Levels: $0.3790, $0.3700, and $0.3500.
Key Resistance Levels: $0.3880 and $0.4000.
Conclusion
Cardano continues to navigate through significant bearish pressures, with critical levels acting as focal points for traders. The failure to surpass the $0.3850 resistance could see ADA testing lower support zones, making it vital for investors to monitor these price levels closely for potential trading opportunities.
