Cardano (ADA) Struggles to Hold Ground: Another Drop Incoming?

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As a seasoned researcher with years of experience in analyzing cryptocurrency markets, I find myself witnessing yet another downward correction in Cardano (ADA) prices. After a brief attempt to break past the $1.00 resistance, ADA seems to have faltered and is now consolidating around the $0.920 and $0.950 levels.

Initially, the price of Cardano dipped, moving away from the $1.00 region. Currently, it’s pausing in its descent, encountering resistance around the $0.920 and $0.950 marks.

  • ADA price started a downward move below the $1.00 support zone.
  • The price is trading below $0.950 and the 100-hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance at $0.92 on the hourly chart of the ADA/USD pair (data source from Kraken).
  • The pair could start another increase if it clears the $0.950 resistance zone.

Cardano Price Starts Fresh Decline

As I observed the market trends, it became apparent that breaking through the $1.00 resistance proved challenging for Cardano. Similar to Bitcoin and Ethereum, it subsequently initiated a downward trend. The value of ADA dipped below not only the $0.9650 but also the $0.950 support levels.

From my analysis, I observed that the peak was reached at $0.9495, following which there was a downward trend. This dip moved below the significant support level of $0.920. Furthermore, the price fell beneath the 50% Fibonacci retracement line of the uptrend from the $0.8628 swing low to the $0.9495 high.

Currently, the value of Cardano is trading below $0.925 and slightly below its 100-hour moving average. As it attempts to rise, potential barriers may be encountered around the $0.920 region. Additionally, a bearish trend line is forming with a resistance at approximately $0.92 on the hourly ADA/USD chart.

Initially, the price may encounter resistance around $0.9350. Subsequently, another potential resistance level is at $0.950. If the price manages to surpass $0.950, it could initiate a powerful upward trend. In such a scenario, the price might climb towards the $1.00 area. Further gains might prompt a quick move towards $1.050 in the coming period.

More Losses in ADA?

If Cardano’s price doesn’t manage to surpass the $0.920 barrier, it might trigger another drop. The potential floor for this decline could be around $0.8950 or the 61.8% Fibonacci retracement point from the price range between $0.8628 swing low and $0.9495 high.

If the price falls below the $0.865 mark, it may lead to a potential drop towards $0.820. However, if the bears can’t break through the $0.8650 level, there’s a possibility of the bulls reappearing around the $0.8050 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 – $0.8950 and $0.8650.

Major Resistance Levels – $0.920 and $0.950.

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2024-12-26 08:10