02 Feb Cardano Price Technical Analysis – ADA/USD to Decline Further?
- ADA price faced a lot of sellers and moved below the $0.4000 support against the US Dollar (tethered).
- There is a declining channel forming with current resistance at $0.3950 on the hourly chart of ADA/USD (data feed via Bittrex).
- The pair is likely to decline further and it could even break the $0.3500 support area in the near term.
Cardano price is trading in a bearish zone against the US Dollar and Bitcoin. ADA/USD may extend the current decline below the $0.3500 support area.
Cardano Price Decline
There was a nasty downtrend initiated in ADA price from well above the $0.6000 level against the US Dollar. The price faced a lot of sellers and it recently moved below the $0.5000 and $0.4000 support levels. The most important move was a break of the $0.4600 support area. It has opened the doors for more declines and the price is now trading well below the $0.4000 level.
The recent low was $0.3602 and the pair is currently poised for further declines. An initial resistance on the upside is around the 23.6% Fib retracement level of the last drop from the $0.5200 high to $0.3602 low. There is also a declining channel forming with current resistance at $0.3950 on the hourly chart of ADA/USD. However, the most important resistance is around the $0.4400 level. It is the 50% Fib retracement level of the last drop from the $0.5200 high to $0.3602 low. Above $0.4400, the previous support at $0.4600 may now act as a crucial barrier for more gains.
On the downside, the price may easily break the recent low of $0.3600. The next break could be below the $0.3500 level. Any further declines could take the price towards the $0.3000 level.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI – The RSI is now placed near the oversold levels.
Major Support Level – $0.3500
Major Resistance Level – $0.4400
Charts courtesy – Cryptowat, Bittrex
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