Cardano Price Technical Analysis – ADA/USD Accelerates Decline

Cardano Price Technical Analysis – ADA/USD Accelerates Decline

Key Highlights

• ADA price failed to correct higher and it declined below the $0.3500 support level against the US Dollar (tethered).
• There is a key bearish trend line forming with resistance at $0.3650 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
• The pair is currently trading below the $0.3500 level and it could decline further in the near term.

Cardano price extended its decline against the US Dollar and bitcoin. ADA/USD is now in a bearish zone and it may continue to decline towards $0.3000.

Cardano Price Resistance

In the last analysis, we discussed the chances of further declines below $0.3600 in ADA price against the US Dollar. The price failed to move above the $0.4000 resistance and started a downside move. It declined sharply and broke the $0.3600 and $0.3500 support levels. There was a lot of pressure on ADA, which pushed its price below the $0.3400 level as well.

A low was formed near $0.3300 from where the price is currently attempting an upside correction. It tested the 23.6 Fib retracement level of the last decline from the $0.3872 high to $0.3300 low. However, a recovery in ADA won’t be easy as the price is now well below $0.3500. On the upside, there is a key bearish trend line forming with resistance at $0.3650 on the hourly chart of the ADA/USD. The trend line resistance is very important since it is near the 50% Fib retracement level of the last decline from the $0.3872 high to $0.3300 low. As long as the price is below the $0.3500 and $0.3600 levels, it remains at a risk of more declines.

On the downside, the recent low of $0.3300 is a decent support. A break and close below $0.3300 could push the price towards the $0.3000 level.

Hourly MACD – The MACD for ADA/USD is showing a low of bearish signs.

Hourly RSI – The RSI for ADA/USD is now near the oversold levels.

Major Support Level – $0.3300

Major Resistance Level – $0.3600

Charts courtesy – Cryptowat, Bittrex

Published at Wed, 21 Feb 2018 08:00:34 +0000

Analysis