Cardano (ADA) Falls: Ethereum’s Decline Pulls Altcoins Down

Cardano price started a fresh decline below the $0.4120 support. Ethereum’s decline seems to be dragging ADA lower toward the $0.380 support.

• ADA price started a fresh decline from the $0.450 resistance zone.
• The price is trading below $0.4120 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $0.4060 on the hourly chart of the ADA/USD pair (data source from Kraken).
• The pair could continue to move down and test the $0.380 support zone.

Cardano Price Shows Signs of More Downsides

After a steady increase, Cardano faced sellers near the $0.450 resistance zone. ADA formed a short-term top and started a pullback below the $0.4250 level. Recently, Ethereum’s decline dragged it further lower below the $0.400 support.

A low is formed near $0.3919 and the price is consolidating losses with a bearish angle. There is also a key bearish trend line forming with resistance at $0.4060 on the hourly chart of the ADA/USD pair.

Cardano price is now trading below $0.4100 and the 100-hourly simple moving average. If there is a recovery wave, the price might face resistance near the $0.4050 zone and the 50% Fib retracement level of the downward move from the $0.4211 swing high to the $0.3919 low.

The first resistance is near $0.4150 or the 76.4% Fib retracement level of the downward move from the $0.4211 swing high to the $0.3919 low. The next key resistance might be $0.4220. If there is a close above the $0.4220 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.4450 region. Any more gains might call for a move toward $0.4500.

More Downsides in ADA?

If Cardano’s price fails to climb above the $0.4050 resistance level, it could continue to move down. Immediate support on the downside is near the $0.3920 level.

The next major support is near the $0.3800 level. A downside break below the $0.3800 level could open the doors for a test of $0.3650. The next major support is near the $0.3500 level where the bulls might emerge.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.

Major Support Levels – $0.3920 and $0.3800.

Major Resistance Levels – $0.4050 and $0.4150.

Source link