In a situation quite similar to that of bitcoin, the price of Cardano is currently fighting to stay above the $0.50 threshold against the US Dollar. In the event that the ADA price breaks below the $0.425 support level, bearish momentum may begin to build.
Cardano Market Analysis and Price Trends
Over the course of the past week, the price of cardano was met with a significant amount of resistance close to the zone of $0.500 versus the US Dollar. After forming a new high close to $0.485, the ADA/USD pair immediately began a new downward trend.
It is now abundantly evident that the support levels at $0.475 and $0.450 have been broken. On top of that, there was a break below a significant bullish trend line on the 4-hour chart, and that line provided support near $0.460. The price even dropped below the $0.440 support level and the 55 simple moving average (4-hours).
Near $0.425 was the location when the price dropped to its lowest point, and it is currently consolidating its losses. It went in the opposite direction, gaining a few points above the $0.440 level. In the direction of the upside, an immediate barrier can be seen close to the area around $0.455 and the 55-day simple moving average (4-hours).
The next significant barrier to overcome is located close to the $0.465 level. It is currently located very close to the 23.6% Fib retracement level of the negative move that began at the swing high of $0.594 and ended at the low of $0.425.
The primary obstacle is located in close proximity to $0.500. If the price is able to make a decisive move higher and break above the $0.500 level, it may proceed towards the resistance at $0.515. It is currently located very close to the 50% Fib retracement level of the downward move that began at the swing high of $0.594 and ended at the low of $0.425.
Should there be further advances, this might signal the beginning of a steady ascent toward the level of $0.55 in the relatively near future. When looking at the chart, one can see that there is an immediate support located close to the $0.432 level. The next significant support is located close to the $0.425 level, and if this level is broken, there is a chance that the price will continue to fall until it reaches the $0.40 support level. Should there be any further losses, a test of the $0.365 level may become necessary. According to the data, the current ADA price is trading lower than 0.50 cents and the 55-day simple moving average (4-hours). If the price is unable to maintain its position above the $0.425 support zone, there is a good chance that it will continue its downward movement.
A Look at Some Technical Indicators
4 hour MACD The MACD for ADA/USD is presently gaining momentum in the bearish zone, but it is still losing ground overall.
4 hour RSI – The RSI value for ADA/USD is currently higher than the level of 50.