The price of ADA initiated a fresh decline after failing to break out from the $0.0650 resistance position against the USD. The price of ADA eventually broke the $0.0605 support position to enter the bearish territory. The analysis also shows that there’s a key bearish pattern forming with resistance close to the $0.0602 area via the 4-hour chart of the ADA/USD pair.
The price of Cardano is now gaining bearish momentum against Bitcoin and the USD. The ADA price is still at risk of suffering further losses under the $0.0540 position and $0.0505 area in the near term. Let’s see how we arrived at the above conclusions for ADA price.
Cardano (ADA) Price Today – ADA / USD
ADA Price Found Support at $0.0500 after Enduring a Strong Decline
After suffering a strong decline price, Cardano went on to find support near $0.0500. The ADA/USD pair also initiated a decent recovery above $0.0580 and $0.0600 both of which are resistance areas. Moreover, the trading pair surpassed the resistance at $0.0620 and the 55 SMA. Finally, the price of ADA went on to test the resistance at $0.0650, where it found a strong selling interest.
ADA Price Formed a Swing High Near $0.0651
A swing high was formed close to the $0.0651 area and recently the ADA price started to go through a fresh decline. The ADA price even traded under a connecting bullish pattern with a support position at the $0.0615 level via the 4-hour chart for the trading pair. The price of Cardano also broke the $0.0600 level which was a support area and then the 55 SMA via the 4-hour chart.
This price action reportedly opened the doors for the digital asset to record more losses under the 50% Fibonacci retracement area via the last wave beginning from $0.0500 to $0.0651. Moreover, there was also a break under the $0.0550 support point. At the moment, ADA price is trading over the 76.4% Fibonacci retracement level via the last wave beginning from $0.0500 to $0.0651. If there’s a downside break under the $0.0535 support, then ADA price could record more losses.
Cardano’s Next Key Support against the USD Rests at $0.0500
The next key support position is near the $0.0520 position. That is below the area where the price of ADA could retest the $0.0500 position which is a support region. Looking at the upside, we can see there are a number of hurdles close to the $0.0600 area. There are immediate resistance positions near the $0.0580 position and the 55 simple moving average on the 4-hour chart.
Moreover, there is also a key bearish pattern forming with resistance close to the $0.0602 region via the same chart. Therefore, ADA price is likely going to face multiple hurdles near $0.0580 and $0.0600.
The ADA/USD chart indicates that the price of the asset class is now trading in a bearish pattern below the $0.0600 level. As long as ADA price is below the $0.0600 position, there will always be chances of more downsides occurring. Above the $0.0600 position, the price of ADA could recover near the $0.0650 and $0.0670 positions for the near term outlook. It appears ADA price action will stay in bearish territory for a short time.
Analysts believe the coin can still turn bullish in the medium term, but for now, the bearish trend will continue.