Cardano (ADA) Price Analysis: Risk of Downside Break Below $0.635

• ADA price started a downside correction from the $0.810 zone against the US Dollar.
• The price is now trading below $0.70 and the 55 simple moving average (4 hours).
• There was a break below a major bullish trend line with support near $0.7020 on the 4-hour chart (data feed via Coinbase).
• The price could start a fresh increase if it clears the $0.680 and $0.700 resistance levels.

Cardano’s price is struggling below $0.700 against the US Dollar, like Bitcoin. ADA price could resume its rally if there is a clear move above the $0.700 resistance.

Cardano Price (ADA) Analysis

In the past few weeks, Cardano’s price started a steady increase above the $0.700 resistance zone against the US Dollar. The ADA/USD pair gained pace for a move above the $0.720 and $0.750 levels.

The price tested the $0.810 zone. The recent high was formed near $0.8102 and the price corrected lower. There was a move below the $0.720 support zone. The price dipped below the 50% Fib retracement level of the upward move from the $0.5800 swing low to the $0.8102 high.

There was a break below a major bullish trend line with support near $0.7020 on the 4-hour chart. ADA price is now trading below $0.7010 and the 55 simple moving average (4 hours).

On the upside, immediate resistance is near the $0.680 zone. The next major resistance is near the $0.700 zone. A clear move above the $0.700 resistance might start a strong increase toward $0.7350. Any more gains above the $0.7350 resistance might send the price toward the $0.750 resistance or even $0.800.

On the downside, immediate support is near the $0.6350 level or the 76.4% Fib retracement level of the upward move from the $0.5800 swing low to the $0.8102 high. The next major support is near the $0.600 level.

A clear move below the $0.60 level might send the price toward the $0.580 level. Any more losses might send the price toward the $0.5650 support.

The chart indicates that ADA price is now trading below $0.700 and the 55 simple moving average (4 hours). Overall, the price could gain bullish momentum if it clears the $0.680 and $0.700 resistance levels.

Technical Indicators

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

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

Key Support Levels – $0.6350 and $0.600.

Key Resistance Levels – $0.680 and $0.700.

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