ADA Price Indicators Suggest Cardano at Clear Risk of Further Declines

2023-07-06 05:24:24

Cardano’s price is declining from the $0.30 zone. ADA could continue to move down if it breaks the $0.280 support zone in the near term.

ADA price is moving lower from the $0.302 zone against the US dollar.
The price is trading below $0.290 and the 100 simple moving average (4 hours).
There was a break below a key bullish trend line with support near $0.2960 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
The pair could slide further toward the $0.264 support zone.

Cardano’s ADA Price Corrects Gains

This past week, Cardano’s price started a decent recovery wave from the $0.264 support zone. The bulls managed to push the price above the $0.280 and $0.295 resistance levels.

It even spiked above the $0.300 resistance. A high is formed near $0.3013 and the price is now correcting gains, similar to Bitcoin and Ethereum. There was a move below the 50% Fib retracement level of the upward move from the $0.2675 swing low to the $0.3013 high.

Besides, there was a break below a key bullish trend line with support near $0.2960 on the 4-hour chart of the ADA/USD pair. The price is now trading below $0.290 and the 100 simple moving average (4 hours).

The price is now holding the $0.280 support. It is close to the 61.8% Fib retracement level of the upward move from the $0.2675 swing low to the $0.3013 high. On the upside, immediate resistance is near the $0.285 zone and the 100 simple moving average (4 hours).

Source: ADAUSD on TradingView.com

The first major resistance is forming near the $0.292 zone. The next key resistance might be $0.30. If there is an upside break above the $0.300 and $0.305 resistance levels, the price could start a decent increase. In the stated case, the price could even surpass the $0.320 resistance zone.

More Losses in ADA?

If Cardano’s price fails to climb above the $0.285 resistance level, it could continue to move down. Immediate support on the downside is near the $0.280 level.

The next major support is near the $0.275 level. A downside break below the $0.275 level could open the doors for a fresh decline toward $0.262. The next major support is near the $0.250 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 – $0.280, $0.275, and $0.262.

Major Resistance Levels – $0.285, $0.295, and $0.305.

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