The price of Cardano began a new downward trend below $0.250. At $0.2450, ADA is testing a critical level of support that might trigger a rally.
The price of ADA began a new downward trend against the US dollar below the $0.255 and $0.250 marks.
The 100 simple moving average (4 hours) and $0.250 are being traded below by the price.
On the ADA/USD pair’s 4-hour chart, a significant downward channel is forming, with resistance located around $0.2480 (data source: Kraken).
ADA Price Is Possibly Correcting; Should You Buy The Dip?,ADA Price Is Possibly Correcting; Should You Buy The Dip?
For the pair to initiate a new rise in the near future, it has to maintain above the $0.2420 support.
Cardano’s Support for ADA Price Revisions
Cardano was unable to break over the $0.2650 resistance zone despite a continuous rise. Similar to Bitcoin and Ethereum, the price made a short-term peak around $0.2668 and has since begun a new drop.
The support level of $0.255 was broken. Also, on the 4-hour chart of the ADA/USD pair, there was a break below a significant bullish trend line with support close to $0.259. The 100 simple moving average (4 hours) and the $0.250 support were even crossed by the pair during its slide.
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The price has created a low around $0.2450, and it is currently consolidating losses. Currently, Cardano is trading below both the 100 simple moving average (4-hour) and $0.250. Immediate resistance on the upswing is located close to the $0.248 region.
On the ADA/USD pair’s 4-hour chart, a significant downward channel is also formed, with resistance located at $0.2480. The 23.6% Fib retracement level of the decline from the $0.2668 swing high to the $0.2450 low, or about $0.250, is the first point of resistance.
The 50% Fib retracement level of the downward move from the $0.2668 swing high to the $0.2450 low might be the next significant barrier, which is $0.2560. A closing above the resistance level of $0.256 would signal the beginning of a respectable price gain. The price may move higher and approach the $0.285 barrier area in the scenario described.
More ADA Losses?
Cardano’s price may drop further if it is unable to get over the $0.250 barrier level. Close to the $0.245 mark is where there is immediate downside support.
The $0.242 mark is in proximity to the next significant support. A downward breach of the $0.242 barrier may pave the way for a severe new drop towards $0.220. Around $0.200 is where the next significant support is located.
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Technical Measures
Four-hour MACD: The ADA/USD MACD is beginning to weaken in the negative area.
Four-hour Relative Strength Index (RSI): The ADA/USD RSI is now below the 50 mark.
- Levels of Major Support: $0.245, $0.242, and $0.220.
- Primary Barriers: $0.250, $0.255, and $0.285.
ADA Price Is Possibly Correcting; Should You Buy The Dip?,ADA Price Is Possibly Correcting; Should You Buy The Dip?,ADA Price Is Possibly Correcting; Should You Buy The Dip?