Key Takeaways:
- ADA price started a major decline below the $0.35 support.
- A crucial bearish trend line forms with resistance near $0.340 on the daily chart.
- The price is down over 25%, but the bulls are active near $0.220.
NEW DELHI (CoinChapter.com) — Cardano’s ADA declined heavily and tested $0.22.0. The price could start a recovery wave if a move is above the $0.35 resistance.
Cardano Price Takes Major Hit
After struggling to reclaim the $0.40 resistance, ADA price started a strong decline against the US Dollar. There was a drop below the $0.35 and $0.32 support levels.
The bears gained strength and pushed the price below the $0.30 support level and the 50-day simple moving average (blue). It even spiked below the $0.2400 support level. A low is formed near $0.2250, and the price is now attempting to recover, like Bitcoin and BNB.
ADA price climbed above the $0.25 resistance zone. It broke the 23.6% Fib retracement level of the main drop from the $0.3863 swing high to the $0.2205 low.
It is now facing resistance near the $0.280 zone. The first major resistance is near the $0.30 zone or the 50% Fib retracement level of the main drop from the $0.3863 swing high to the $0.2205 low. The next major resistance sits at $0.320.
There is also a crucial bearish trend line forming with resistance near $0.340 on the daily chart. A close above the $0.30 resistance and then the trend line might start a recovery wave toward $0.35. Any more gains might pump the price toward the $0.40 level.
More Losses in ADA?
If there is no upside break above the $0.30 resistance zone, the ADA price might continue to move down. Initial support on the downside is near the $0.26 level.
The first major support is now forming near the $0.24 level. A downside break below the $0.24 support zone might send the price toward the main support at $0.220. Any more losses could initiate a move toward the $0.20 support in the coming days, where the bulls could take a stand.
ADA is attempting a recovery wave above the $0.25 resistance zone. Having said that, the Bulls need to gain strength for a move above the $0.30 resistance zone. If they fail, there is a risk of a drop toward the $0.22 support zone.
