Key Takeaways:
- ADA price trimmed all gains after it faced rejection near $0.380.
- A crucial bearish trend line is forming with resistance near $0.258 on the daily chart.
- The price could continue to move down and revisit the $0.20 support.
NEW DELHI (CoinChapter.com) — Cardano’s ADA is moving below $0.250. The bears seem to be in control and could aim for a drop toward the $0.20 support.
Cardano Price Signals Bearish Continuation
After facing a strong rejection near $0.380, ADA price started a fresh decline against the US Dollar. There was a steady decline below the $0.350 and $0.300 support levels.
The bears pushed the price below the 61.8% Fib retracement level of the last main increase from the $0.2205 swing low to the $0.3787 high. The current price action is more bearish compared to Bitcoin and Ethereum.
ADA price is now trading well below $0.30 and the 50-day simple moving average (blue). A crucial bearish trend line is forming with resistance near $0.258 on the daily chart.
The price is now trading below the 76.4% Fib retracement level of the last main increase from the $0.2205 swing low to the $0.3787 high. The last 3-4 candles signal increased selling pressure and high chances of more downsides.
The first major support is near the $0.232 level, below which the price could drift toward the $0.220 support zone. If the bulls fail to protect the $0.220 support zone, ADA bears could aim for a test of the $0.20 support region.
Any more downsides might send Cardano toward the $0.185 level or the 1.236 Fib extension level of the last main increase from the $0.2205 swing low to the $0.3787 high.
Recovery Attempt in ADA?
If the bulls protect the $0.220 support, there could be a fresh recovery wave. Immediate resistance is near the $0.258 level and the trend line. A close above-the-trend line resistance might initiate a steady increase.
The next key resistance is near $0.280 or the 50-day simple moving average (blue), above which the price could test $0.30. If the bulls push ADA above $0.30, there are chances of a drift toward the main barrier at $0.380.
Overall, ADA is gaining pace below the $0.258 support. Cardano could drop toward $0.220 or even $0.20 if the bears remain in action. Conversely, there might be a recovery wave toward $0.30.
