More pain is yet to come

Cardano price has started a significant decline after breaking the major $0.4200 support. Unless the $0.50 pivot level is crossed, ADA can continue to fall.

• ADA price has broken below the $0.420 support against the US dollar, showing many bearish signs.
• The price is trading well below $0.400 and the 100 simple moving average (4 hours).
• The 4-hour chart of the ADA/USD pair has two bearish trend lines forming with resistance at $0.3700 and $0.3880 (data source from Kraken).
• The pair can continue to break below the $0.3500 support zone.

Cardano (ADA) Price Shows Bearish Wave

Cardano has been well above $0.5000 for the past few days, but it is steadily declining. The bears have broken below the critical support level at $0.450 and he is at $0.420.

The decline progressed at a pace below the $0.400 level and the 100 Simple Moving Average (4-hour timeframe). A low was formed around $0.3500 and the price moved up slightly, similar to Bitcoin and Ethereum. ADA price broke above the $0.3620 and $0.3700 levels.

From the swing high of $0.4265 to the low of $0.3500, there was a move above the 23.6% Fib retracement level. However, the price was unable to continue its upward move and has broken below $0.3800.

The upside resistance is near $0.3700. Also, two bearish trend lines have formed with resistance at $0.3700 and $0.3880 on his 4-hour chart of the ADA/USD pair. The first major resistance has formed around the $0.3880 zone.

Source: ADAUSD on TradingView.com

The 50% Fib retracement level of the move down from the swing high of $0.4265 to the low of $0.3500 is also close to $0.3880. Major resistance is currently forming near $0.4080 and the 100 simple moving average (4-hour). A breakout of the $0.408 and $0.420 resistance levels can lead to a significant rally. In the aforementioned case, the price could rise steadily towards the $0.50 level.

more pain?

If Cardano price fails to recover above the $0.3880 and $0.400 resistance levels, it could continue to fall. There is support on the downside near $0.360.

The main support is near $0.350. A break below $0.350 could open the door for a new drop to $0.320. The next major support is near $0.300.

technical indicator

4-Hour MACD – The ADA/USD MACD is slowly losing momentum in the bullish zone.

4-Hour RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.

Major Support Levels – $0.360, $0.350, $0.300.

Key resistance levels – $0.3700, $0.388, $0.408.