As a seasoned crypto investor with years of market fluctuations under my belt, I can’t help but feel a sense of deja vu as I analyze the current Cardano (ADA) price action. The latest dip below the $0.350 support and the 100-hourly SMA is reminiscent of past corrections we’ve seen in this space.
The cost of Cardano initially dropped after hitting a resistance at around $0.3850. Currently, it’s holding steady above $0.3350, potentially preparing for an upward movement.
- ADA price started a downward move below the $0.3550 support level.
The price is trading below $0.350 and the 100-hourly simple moving average.
There is a short-term bearish trend line forming with resistance at $0.3480 on the hourly chart of the ADA/USD pair (data source from Kraken).
The pair could continue to move down if it stays below the $0.360 resistance zone.
Cardano Price Dips Again
Following its attempt to break through the $0.4150 barrier, Cardano found it challenging to push further upwards. Consequently, ADA reached a temporary peak and commenced a new downtrend similar to Bitcoin and Ethereum. Subsequently, there was a significant drop below the support levels of $0.3850 and $0.3650.
As a crypto investor, I’ve seen the value dip below $0.350, but luckily, the bulls made an appearance. We hit a low at $0.3360, and currently, we’re in a phase of consolidating our losses. There was a slight uptick above the $0.3420 mark, but it’s important to note that the price tested the 23.6% Fibonacci retracement level stemming from the upward swing from $0.3853 to the low at $0.3360.
Currently, the value of Cardano is trading below $0.360 and slightly lower than its 100-hour moving average. As it moves upward, potential obstacles may arise around the $0.3500 region. Additionally, a temporary bearish trend line is being formed with resistance at approximately $0.3480 on the hourly ADA/USD chart.
The initial point of potential resistance is around $0.360, which also represents approximately half the distance (Fibonacci retracement level) that the price has moved down from its peak at $0.3853 to its low at $0.3360. If prices break above $0.3740, a strong upward trend may begin, possibly taking the price up to the $0.400 area. Further gains could potentially push the price toward $0.4150.
More Downsides in ADA?
If Cardano’s value doesn’t manage to rise beyond the $0.3500 barrier, there’s a possibility of another drop. The immediate floor in case of a fall can be found around $0.340.
As an analyst, I find myself anticipating that the next significant support lies around the $0.3350 mark. A potential breach below this level could lead to a test at $0.3220. Further down, around the $0.300 level, is where I expect the bulls may re-emerge, providing potential support.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.3400 and $0.3350.
Major Resistance Levels – $0.3500 and $0.3600.
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2024-10-03 08:10