Cardano (ADA) Faces Modern Drop: Key Factors Behind the Downtrend

Cardano’s price did not exceed $0.40 and began another decline. ADA is currently trading below $0.3850 and may augment its losses in the near future.

ADA price started a recent decline and reached below USD 0.3880.
The price is trading below $0.3850 and the 100-hour plain moving average.
There was a break below a key uptrend line with support at $0.3845 on the hourly chart of ADA/USD (data source from Kraken).
The pair may extend losses and test the $0.370 support zone.

Cardano prices are falling again

Over the past few days, Cardano has attempted a recovery wave above the $0.3650 zone like Bitcoin and Ethereum. However, ADA failed to break the resistance zone at $0.40. The highest level was formed at USD 0.3967 and the price began a recent decline.

There was a move below the $0.3880 and $0.3865 support levels. The price fell below the 23.6% Fibonacci retracement level of the upside from the $0.3620 swing low to $0.3967 high. Additionally, there was a break below the key bullish trendline with support at $0.3845 on the hourly chart of the ADA/USD pair.

ADA is currently trading below $0.3850 and the 100-hour plain moving average. If there is another upward move, the price may encounter resistance near the $0.3850 zone.

The first resistance is near $0.3880. The next key resistance could be $0.40. If the close is above the $0.40 resistance, the price may start a mighty rally. In the given case, the price may augment towards $0.4150. Any further gains may require a move towards $0.4250.

More ADA flaws?

If Cardano price fails to break above the $0.3850 resistance level, it may continue to decline. Immediate support on the downside is located near the $0.3795 level or the 50% Fibonacci retracement level of the up move from the $0.3620 swing low to the $0.3967 high.

The next crucial support is near the $0.370 level. A downside break below the $0.370 level could open the door to a test of the $0.350 level. The next crucial support is near the USD 0.3350 level.

Technical indicators

Hourly MACD – MACD for ADA/USD is gaining momentum in a bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.

Major support levels – USD 0.3790, USD 0.370 and USD 0.350.

Major resistance levels – USD 0.3880 and USD 0.400.