Cardano’s ADA price has recently experienced a decline, falling below the $0.250 level. Currently, ADA is testing a critical support level at $0.2450, which could potentially trigger a recovery wave.
The decline in ADA price can be attributed to its failure to surpass the $0.2650 resistance zone. After reaching a short-term peak at $0.2668, the price began to decline again, following the trend of other cryptocurrencies like Bitcoin and Ethereum.
During this decline, ADA fell below the $0.255 support level and broke a key bullish trend line with support at $0.259 on the 4-hour chart. It also dropped below the $0.250 support level and the 100 simple moving average (4 hours).
The price eventually hit a low point around $0.2450 and is currently consolidating its losses. ADA is now trading below $0.250 and the 100 simple moving average (4 hours). The immediate resistance is around the $0.248 zone.
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On the 4-hour chart, a significant declining channel has formed with resistance near $0.2480. The first resistance level is at $0.250, which represents the 23.6% Fibonacci retracement level of the downward movement from the swing high of $0.2668 to the low of $0.2450.
To initiate a fresh increase in the near term, it is important for ADA to remain above the $0.2420 support level. If the price manages to surpass the $0.250 resistance level, it could potentially start a decent increase towards the $0.285 resistance zone.
However, if ADA fails to climb above the $0.250 resistance level, it could continue its downward movement. The immediate support on the downside is around $0.245, followed by a major support level at $0.242. A break below $0.242 may result in a sharp decline towards the $0.220 level, and the next major support level lies at $0.200.
Analyzing the technical indicators, the 4-hour MACD for ADA/USD is losing momentum in the bearish zone, indicating a potential continuation of the decline. The 4-hour RSI (Relative Strength Index) for ADA/USD is now below the 50 level, further supporting a bearish sentiment.
In summary, Cardano’s ADA price has experienced a fresh decline, finding support at $0.2450. The price is currently consolidating losses and trading below $0.250 and the 100 simple moving average (4 hours). ADA must maintain support above $0.2420 to begin a potential recovery wave. However, if it fails to surpass the $0.250 resistance level, it could continue its downward movement towards key support levels at $0.242 and $0.220.
