Cardano (ADA) Price Analysis: Downside Correction Could Be Limited

Cardano price is correcting lower below $0.40 against the US Dollar, similar to bitcoin. ADA price could extend its decline if it breaks the $0.365 support.

Cardano Price Analysis

This past week, cardano price started a steady increase above the $0.365 resistance zone against the US Dollar. The ADA/USD pair gained pace for a move above the $0.388 and $0.390 levels.

It even broke the $0.400 level and settled well above the 55 simple moving average (4-hours). It traded as high as $0.413 and recently started a downside correction. There was a move below the $0.392 and $0.388 levels. There was also a break below a key rising channel with support near $0.388 on the 4-hours chart.

It is now trading below $0.400 and the 55 simple moving average (4-hours). A low is formed near $0.379 and the price is consolidating losses.

On the upside, an immediate resistance is near the $0.388 zone. It is near the 23.6% Fib retracement level of the recent decline from the $0.413 swing high to $0.379 low. The next major resistance is near the $0.398 level or the $0.400 zone.

The 50% Fib retracement level of the recent decline from the $0.413 swing high to $0.379 low is also near $0.398. A clear move above the $0.400 resistance might start a strong increase. Any more gains above the $0.412 resistance might send the price towards the $0.435 resistance or even $0.450.

On the downside, an immediate support is near the $0.380 level. The next major support is near the $0.365 level. A clear move below the $0.365 level might send the price towards the $0.338 level. Any more losses might send the price towards the $0.300 support.

Cardano (ADA) Price

The chart indicates that ADA price is now trading below $0.40 and the 55 simple moving average (4-hours). Overall, the price could gain resume its increase if it stays above the $0.370 and $0.365 support levels.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is now losing pace in the bullish zone.

4 hours RSI – The RSI for ADA/USD is now below the 50 level.

Key Support Levels – $0.380 and $0.365.

Key Resistance Levels – $0.388 and $0.398.

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