Key Takeaways:
– Cardano’s (ADA) price has begun a fresh decline from the $1.00 level.
– ADA is now trading below $0.950 and the 100-hourly simple moving average.
– The ADA/USD pair broke a key bullish trend line, pointing to more potential downside.
– Resistance may be seen at the $0.950 and $0.9880 price levels.
– Major support hovers around $0.940 and $0.935; a further plunge could see a test of $0.9040.
Cardano’s Decline Begins Afresh
After struggling to sustain above the $1.00 level, Cardano (ADA) embarked on a fresh decline similar to bitcoin and ethereum. The decline took ADA below the $0.9650 and $0.950 support levels. Unlike its counterparts, ADA showed a clear drop below the $0.950 support zone.
This showcased a break from a key bullish trend line that had found support at $0.950, suggesting a shift in the ADA/USD pair’s market direction. The situation worsened as the pair traded below the 50% Fibonacci retracement level. This pivot point tracked an upward move from the $0.9007 swing low to $0.9881 high.
A Key Price Zone and the Fickle 100-hourly Average
Cardano price is now centered below $0.950 and the 100-hourly simple moving average. While this may signal a downturn, it’s crucial to note that the currency could still resist the slide. Currently, potential resistance hovers near the $0.950 zone, followed by the $0.9650 level.
Should ADA Manage to Break Past the Resistance
Should the Cardano price manage to close above the $0.9880 resistance, positive indicators suggest the onset of a strong rally. In such a situation, ADA could then climb back towards the elusive $1.00 region. Even further gains could fuel the momentum, leading to a targeted move towards $1.050 in the near future.
A Potential for Another Decline in ADA Value
However, if the Cardano price fails to cross above the $0.950 resistance level, another decline could be imminent. Immediate support on the downside is congregated near the $0.940 level and the currently bearish 100-hourly simple moving average.
The next crucial support level lies near the $0.9350 mark, aligning with the 61.8% Fib retracement level of its most recent swing from $0.9007 to $0.9881. A downward break below this hinge at $0.9350 might open up an avenue for a potential test of the $0.9040 mark. Subsequent key support then hovers at the $0.8550 level, where market bulls may rally.
Technical Indicators Point to Bearish Momentum
Technically, the Moving Average Convergence Divergence (MACD) for ADA/USD is gaining pace in the bearish zone, suggesting potential for a downward price movement. Meanwhile, the Relative Strength Index (RSI) for the ADA/USD pair is now below the neutral 50 level, hinting at a possible predisposition for sellers.
Major resistance levels look set at $0.9500 and $0.9880 and, on the flip side, significant support lines are forming around $0.9400 and $0.9350. While the ADA market is currently laden with risks, a confident return to the key $1.00 level can potentially offset the slide.
However, as the cryptocurrency market continues to stay volatile, ADA’s price can swing based on a host of factors, including wider market sentiment. Therefore, investors should stay attentive to these price points and trends.
In conclusion, ADA’s recent performance raises concerns of more decline on the horizon. However, the market’s intrinsic volatility leaves room for quick recovery, allowing cautious optimism for traders and investors alike.