Cardano price failed to gain momentum against the US Dollar and Bitcoin. ADA/USD declined below $0.0380 and it could continue to move down towards $0.0350.
After trading close to the $0.0450 resistance, cardano price started a downside move against the US Dollar. The ADA/USD pair declined and traded below the $0.0420 and $0.0400 support levels. There was a close below the $0.0400 support and the 100 hourly simple moving average. Moreover, the price broke the 76.4% Fibonacci retracement level of the last recovery from the $0.0379 low to $0.0433 high.
More importantly, there was a break below a major bullish trend line with support at $0.0398 on the hourly chart of the ADA/USD pair. The pair is now trading below the $0.0380 support level with a bearish angle. If the price continues to move down, there are chances of it testing the $0.0350 support. The 1.618 Fib extension level of the last recovery from the $0.0379 low to $0.0433 high is also near $0.0350. Therefore, the $0.0350 level is likely to act as a strong support. On the upside, an initial resistance is near the $0.0380 level. The main hurdle is near the $0.0400 level and the 100 hourly SMA.
The chart indicates that ADA price is under a lot of pressure below the $0.0380 support. There could be more declines, but the $0.0350 support is likely to act as a strong barrier for sellers.
Hourly MACD – The MACD for ADA/USD is placed in the bearish zone.
Hourly RSI – The RSI for ADA/USD is currently well below the 40 level.
Major Support Level – $0.0350
Major Resistance Level – $0.0400