As a seasoned crypto investor with over a decade of experience in this volatile market, I’ve learned to navigate the turbulent seas of digital assets with a steady hand and a keen eye for opportunity. The recent decline in Cardano’s price has been a familiar dance, one that we’ve seen many times before.
The cost of Cardano initially dipped beneath the $0.3565 level, signifying a new downtrend. However, ADA is currently holding steady just above $0.3420, indicating potential for an upward correction.
- ADA price started a downward move below the $0.3520 support level.
- The price is trading below $0.3500 and the 100-hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $0.3460 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could attempt a recovery wave if it clears the $0.3520 resistance zone.
Cardano Price Consolidates Losses
Following its attempt to break through the $0.3700 barrier, Cardano found it challenging to push further upwards. Contrary to Bitcoin and Ethereum, ADA formed an interim peak and initiated a new downward trend instead. The price dropped below the support of $0.3550 and $0.3500 levels.
Initially, the price dipped below $0.3450, reaching a low at $0.3394. After that, it seems to be stabilizing as it recovers from its losses. There was a brief spike above $0.3420, but the price has since returned. Additionally, the price has moved beyond the 23.6% Fibonacci retracement level of the downward trend that started at the high of $0.3705 and ended at the low of $0.3394.
Additionally, a significant rise occurred above a crucial bearish trend line, marked at approximately $0.3460 in the hourly chart of the ADA/USD pair. At present, Cardano’s price is hovering below $0.350 and dipping beneath the 100-hour moving average.
Positively, there’s a possibility that the price may encounter a barrier around the $0.3515 range. The initial barrier could be at $0.3550 or the halfway point of the price drop from the peak of $0.3705 to the trough of $0.3394. Another significant resistance might emerge at $0.3620.
Should the price break through the $0.3620 barrier (a potential resistance level), it may trigger a significant upward trend. In such a scenario, we could see the price climbing towards the $0.3700 area. Further increases in price might suggest a possible advance toward $0.3880.
More Downsides in ADA?
If Cardano’s price fails to climb above the $0.350 resistance level, it could start another decline. Immediate support on the downside is near the $0.3420 level.
Approaching soon, significant resistance can be found around the $0.3400 mark. If this level is breached downwards, it may lead to a possible test at $0.3220. Further potential support lies near $0.3100, where we might see the bulls regaining strength.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is losing 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 $0.3220.
Major Resistance Levels – $0.3500 and $0.3550.
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2024-10-18 08:10