31 Jan Cardano Price Technical Analysis – ADA/USD Remains in Downtrend
- ADA price struggled a lot recently and it moved below the $0.5000 support area against the US Dollar (tethered).
- There are two bearish trend lines forming with resistance at $0.5000 and $0.52000 on the hourly chart of ADA/USD (data feed via Bittrex).
- The pair remains at a risk of more losses toward the $0.4500 and $0.4000 support levels in the near term.
Cardano price is currently under a lot of pressure against the US Dollar and Bitcoin. ADA/USD is struggling to move higher with a strong resistance near $0.5200.
Cardano Price Resistance
There was no major recovery in ADA price above the $0.6200 resistance against the US Dollar. The price started a fresh downside wave and broke many important supports on the way down such as $0.5500 and $0.5000. It traded as low as $0.4631 and is currently consolidating losses. It recently tested the 23.6% Fib retracement level of the last decline from the $0.6700 high to $0.4631 low.
However, the upside move was capped by the $0.5000 resistance. There are two bearish trend lines forming with resistance at $0.5000 and $0.52000 on the hourly chart of ADA/USD. These trend lines are important and a break above $0.5200 won’t be easy. Above $0.5200, the 50% Fib retracement level of the last decline from the $0.6700 high to $0.4631 low is likely to prevent upsides. Therefore, it seems like there are many hurdles forming around $0.5200 and $0.5500.
On the downside, there is a major support around $0.4500-0.4600. A break below $0.4500 could trigger further declines in the near term. The next major support for buyers is around the $0.4000. Overall, the market is bearish and ADA is at a risk of more declines toward $0.4500.
Hourly MACD – The MACD is mostly placed in the bearish zone.
Hourly RSI – The RSI is heading lower and it is moving into the oversold levels.
Major Support Level – $0.4500
Major Resistance Level – $0.5200
Charts courtesy – Cryptowat, Bittrex
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