Last month, it was reported that Cardano signed an agreement with AlgoZ to leverage AlgoZ’s proprietary automated liquidity product to unlock increased liquidity in ADA for traders and investors. Following this report, many crypto proponents have anticipated a price jump for the asset class. As of July 10, the price action of ADA has been up and down. Volatility has been the order of the day. Now, it is clear that ADA is on the verge of a stip decline in prices.
The price of ADA failed to climb over the $0.0825 position. It recently fell under the $0.0800 area. The Cardano price is now trading in bearish territory under the $0.0800 key support position. From the charts, ADA price saw a break under an ascending pattern with support at the $0.0790 area via the 4-hour chart of the ADA/USD pair.
The price of Cardano may actually decline heavily should it break the $0.0755 and $0.0750 support positions via the near term. There’s pressure for ADA price against the USD and the asset class is still at risk of significant declines should the $0.0750 position is breached. Let’s see a full analysis of the coin below after the above brief highlight.
Cardano (ADA) Price Today – ADA / USD
Cardano Price Saw a Decent Yet Brief Recovery When it Reached $0.0800
Recently, the price of ADA saw a decent recovery which it above $0.0800 position. The ADA/USD pair managed to spike above the $0.0820 position but struggled to move higher. A swing high formed at the $0.0824 area and prices declined. Cardano price broke through key support at $0.0800 to settle below the 55 SMA.
Moreover, there another break under an ascending channel that had support at $0.0790 via the 4 hour chart of the pair. The pair broke the $0.0780 support and traded under $0.0758. It is now in consolidation with resistance near $0.0780. The 23.6% Fibonacci retracement position via the last drop from $0.0824 to $0.0758 is just under $0.0780.
A Close Above $0.0800 Could Trigger a Bullish Move Towards $0.0820
Looking at the upside, we can see that there’s a strong resistance position forming near $0.0792 and the 55 SMA. The 50% Fibonacci retracement position via the last drop from $0.0824 to $0.0758 is near the $0.0792 position. A successful close above $0.0800 is required if ADA has to increase to $0.0820 which is a resistance point.
If there’s a break above $0.0820 and $0.0825 both resistance levels, prices could recover strongly. Conversely, if ADA price fails to climb over both $0.0800 or $0.0820, ADA could be in for further declines. The main supports points are $0.0758, $0.0755 and $0.0750. A downside break under the $0.0750 support area could take Cardano price down heavily for the near term outlook.
What About ADA Technical Indicators?
The chart also indicates that the price of ADA is currently trading above $0.0758, $0.0755 and $0.0750 all of which are key support points. If it fails to recover over $0.0800 and $0.0820, then sellers must look forward to a downside break in coming trade sessions. The next support under $0.0750 could be close to $0.0700. MACD is losing momentum currently because it is a bearish area. RSI is now well under the 50 level, presenting a flat structure.
Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.