Cardano (ADA) Faces Fresh Decline: Key Drivers Behind The Downtrend

As a seasoned crypto investor with years of experience in the market, I’ve seen my fair share of price declines in various cryptocurrencies, including Cardano (ADA). The latest dip in ADA’s price below $0.3850 and the 100-hourly simple moving average is disappointing, to say the least.

The price of Cardano fell short of reaching $0.40 and has since dropped further. Currently, the coin is being traded below $0.3850. It’s possible that Cardano could experience additional decreases in the coming days.

    ADA price started a fresh decline and traded below $0.3880.
    The price is trading below $0.3850 and the 100-hourly simple moving average.
    There was a break below a key bullish trend line with support at $0.3845 on the hourly chart of the ADA/USD pair (data source from Kraken).
    The pair could extend losses and test the $0.370 support zone.

Cardano Price Dips Again

Over the past week, Cardano made an attempt to rebound above the $0.3650 mark, similar to Bitcoin and Ethereum. Yet, it couldn’t surpass the resistance level at $0.40. The peak reached was at $0.3967, leading to a new slide in its price.

As an analyst, I’ve observed that the price of ADA/USD dipped below the crucial support levels of $0.3880 and $0.3865. Furthermore, we witnessed a downward trend that went beyond the 23.6% Fibonacci retracement level, which marks the upward movement from the swing low at $0.3620 to the high at $0.3967. Additionally, there was a significant breakdown below the bullish trend line, providing support at $0.3845 on the hourly chart.

The current price of ADA on the hourly chart is under $0.3850 and below its 100-hour moving average. Should there be another price surge, the $0.3850 area could serve as a potential resistance point.

Cardano (ADA) Faces Fresh Decline: Key Drivers Behind The Downtrend

Initially, the currency encounters resistance around the $0.3880 mark. Subsequently, a significant resistance level lies at approximately $0.40. Should the price break above this barrier, it may spark a robust uptrend. Consequently, potential targets include the $0.4150 region. Further gains could potentially lead to a push toward $0.4250.

More Downsides in ADA?

If Cardano’s price is unable to surpass the $0.3850 resistance, it may instead head lower. The price has a supportive floor around $0.3795 or the 50% Fibonacci retracement mark of the upward trend from $0.3620 to $0.3967.

If we move forward, the next significant level of support is found around $0.370. A decline below this point might lead us to revisit the $0.350 mark. Alternatively, the following noteworthy support lies at approximately $0.3350.

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 – $0.3790, $0.370, and $0.350.

Major Resistance Levels – $0.3880 and $0.400.

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2024-06-27 08:13