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Cardano (ADA) Faces Fresh Decline: Key Drivers Behind The Downtrend

Started by Bitcoin, Jun 27, 2024, 10:48 am

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Cardano (ADA) Faces Fresh Decline: Key Drivers Behind The Downtrend

Cardano price failed to surpass $0.40 and started another decline. ADA is now trading below $0.3850 and might extend losses in the near term.



  • ADA price started a fresh decline and traded below $0.3880.

  • The price is trading below $0.3850 and the 100-hourly simple moving average.

  • There was a break below a key bullish trend line with support at $0.3845 on the hourly chart of the ADA/USD pair (data source from Kraken).

  • The pair could extend losses and test the $0.370 support zone.


Cardano Price Dips Again


In the past few days, Cardano attempted a recovery wave above the $0.3650 zone like Bitcoin and Ethereum. However, ADA failed to clear the $0.40 resistance zone. A high was formed at $0.3967 and the price started a fresh decline.


There was a move below the $0.3880 and $0.3865 support levels. The price declined below the 23.6% Fib retracement level of the upward move from the $0.3620 swing low to the $0.3967 high. Besides, there was a break below a key bullish trend line with support at $0.3845 on the hourly chart of the ADA/USD pair.


ADA price is now trading below $0.3850 and the 100-hourly simple moving average. If there is another upward move, the price might face resistance near the $0.3850 zone.


Cardano Price ADA

The first resistance is near $0.3880. The next key resistance might be $0.40. If there is a close above the $0.40 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.4150 region. Any more gains might call for a move toward $0.4250.


More Downsides in ADA?


If Cardano's price fails to climb above the $0.3850 resistance level, it could continue to move down. Immediate support on the downside is near the $0.3795 level or the 50% Fib retracement level of the upward move from the $0.3620 swing low to the $0.3967 high.


The next major support is near the $0.370 level. A downside break below the $0.370 level could open the doors for a test of $0.350. The next major support is near the $0.3350 level.


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 - $0.3790, $0.370, and $0.350.


Major Resistance Levels - $0.3880 and $0.400.


Source: Cardano (ADA) Faces Fresh Decline: Key Drivers Behind The Downtrend