Key Highlights
- ADA price faced a strong selling interest near $0.2240 and declined against the US Dollar (tethered).
- There was a break below a crucial ascending channel with support at $0.2060 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair is currently holding the $0.180 support level, but it remains at a risk of more declines.
Cardano price is showing a few bearish signs against the US Dollar and Bitcoin. ADA/USD could continue to move down if it breaks the $0.1800 support level
Cardano Price Downside Break
There was a decent upside earlier this week above $0.1800 level in ADA price against the US Dollar. The price traded above the $0.2000 and $0.2200 level. However, it faced a strong selling interest near the $0.2240 and $0.2250 levels on the upside. A short-term top was formed at $0.2244 and the price started a downside move. It traded lower and broke the 23.6% Fib retracement level of the last wave from the $0.1233 low to $0.2244 high.
More importantly, there was a break below a crucial ascending channel with support at $0.2060 on the hourly chart of the ADA/USD pair. The pair tumbled and broke the $0.1900 level. It settled below the $0.200 level and the 100 hourly simple moving average. It is currently testing the $0.1800 support area and remains at a risk of more losses. On the downside, below $0.1800, the next support is around the 50% Fib retracement level of the last wave from the $0.1233 low to $0.2244 high.
On the upside, the broken support at $0.2000 and the 100 hourly SMA are likely to act as a hurdles. Above $0.2000, the price move above the $0.2200 level to challenge $0.2240 and $0.2250.
Hourly MACD – The MACD for ADA/USD is now back in the bearish zone.
Hourly RSI – The RSI for ADA/USD is currently recovering higher from the 35 level.
Major Support Level – $0.1800
Major Resistance Level – $0.2000
Charts courtesy – Trading View
