Cardano’s price started a fresh decline from the $0.415 resistance. ADA could decline further if there is a clear move below the $0.38 support.

ADA price is struggling to gain pace above $0.40 and $0.415 against the US dollar.
The price is trading below $0.400 and the 100 simple moving average (4 hours).
There is a major bearish trend line forming with resistance near $0.398 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
The pair could start a decent increase if it clears the $0.400 resistance zone.

Cardano’s ADA Price Faces Resistance

This past week, Cardano’s price made a couple of attempts to clear the $0.415 resistance. However, the bulls struggled to gain strength for a sustained move above $0.415.

As a result, there was a fresh decline toward the $0.38 support. A low is formed near $0.3800 and the price is showing a few bearish signs, similar to Bitcoin and Ethereum. It is now trading below $0.400 and the 100 simple moving average (4 hours).

On the upside, immediate resistance is near the $0.398 zone. There is also a major bearish trend line forming with resistance near $0.398 on the 4-hour chart of the ADA/USD pair.

The trend line is close to the 50% Fib retracement level of the recent drop from the $0.4149 swing high to the 0.3800 low. The next major resistance is forming near the $0.400 zone or the 100 simple moving average (4 hours).

The 61.8% Fib retracement level of the recent drop from the $0.4149 swing high to the 0.3800 low is also near $0.4015. If there is an upside break above the $0.402 and $0.405 resistance levels, the price could start a decent increase.

Source: ADAUSD on TradingView.com

In the stated case, the price could even surpass the $0.415 resistance zone. The next key resistance might be $0.432, above which it could test $0.45.

More Losses?

If Cardano’s price fails to climb above the $0.400 and $0.415 resistance levels, it could continue to move down. Immediate support on the downside is near the $0.380 level.

The next major support is near the $0.365 level. A downside break below the $0.365 level could open the doors for a fresh decline toward $0.350. The next major support is near the $0.325 level.

Technical Indicators

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

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

Major Support Levels – $0.380, $0.365, and $0.350.

Major Resistance Levels – $0.400, $0.415, and $0.432.

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Filed under: Bitcoin - @ May 3, 2023 10:23 am