Cardano’s price has recently entered a downward trend, notably moving below the $0.3850 resistance level. Following this peak, the cryptocurrency’s value fell, ultimately hovering above the $0.3350 level where it is currently consolidating. A bearish atmosphere persists as traders remain cautious.
The ADA token experienced a decline past the $0.3550 support level, trading well under $0.350 and the 100-hourly simple moving average. A bearish trend line has formed, with significant resistance emerging at $0.3480 on the hourly chart pertaining to the ADA/USD trading pair. This pattern indicates potential challenges ahead, particularly if the price fails to reclaim the $0.360 resistance area.
Initially, after reaching a high near $0.4150, Cardano encountered difficulty in maintaining upward momentum. This led to a pronounced decrease, paralleling the movements seen in Bitcoin and Ethereum . As prices dipped beneath critical support levels of $0.3850 and $0.3650, Cardano hit a low of $0.3360 before slight buying pressure emerged, allowing a minor rebound above the $0.3420 level. At this point, Cardano continues to struggle beneath the $0.360 level.
Resistance levels now loom at $0.350, with the 50% Fibonacci retracement level from the recent price decline also serving as a barrier. Should Cardano manage to close above the $0.3740 resistance, it could herald an upward shift, potentially driving the price towards the $0.400 region and beyond.
Conversely, if the price stagnates below the $0.3500 resistance, the possibility for further decline remains. Immediate downside support can be found at $0.340, while the more pivotal support level sits at $0.3350. A breach below this could see Cardano testing the $0.3220 and potentially the $0.300 level, where buying interest might be reignited.
