Cardano (ADA) started a fresh decline after it failed to clear the $0.720 resistance. The price is now at risk of more losses below $0.520 and $0.50.
Cardano Price Faces Uphill Task
In the past few days, Cardano price saw a steady decline from the $0.720 resistance zone. The bears were able to push the price below the $0.650 and $0.620 support levels. The price even dived below $0.550 before the bulls appeared.
A low was formed at $0.5114 and the price is now consolidating losses. Recently, ADA price attempted a recovery wave above the $0.550 level, but the upside was limited compared to Bitcoin. The bears remained active near the $0.60 level. They protected the 23.6% Fib retracement level of the downward move from the $0.8637 swing high to the $0.5114 low.
ADA price is now trading well below the $0.600 level and the 50-day simple moving average (blue). Besides, there is a key bearish trend line forming with resistance at $0.620 on the daily chart.
If the bulls attempt another recovery, they face resistance near the $0.60 level. The first hurdle sits near the $0.620 level and the trend line. To start a fresh increase, Cardano must clear the $0.620 resistance zone.
The next resistance zone could be near the 50-day simple moving average (blue) at $0.660. The main resistance is now forming near the $0.730 level. It is near the 61.8% Fib retracement level of the downward move from the $0.8637 swing high to the $0.5114 low.
A close above the $0.730 zone could open the doors for more upsides. The next key resistance could be near the $0.80 zone. Any more gains might send ADA toward the $0.850 level.
More Losses In ADA?
If there is no move above $0.620, ADA price could start another decline. Immediate support is near the $0.5320 level. The first major support is near the $0.5120 level.
The next major support is near the $0.50 pivot level, below which there is a risk of a drop toward the $0.4650 level. Any more losses might increase selling pressure and send Cardano toward $0.450.
Overall, ADA is showing bearish signs below the $0.60 and $0.620 levels. If the bears remain active, Cardano could accelerate lower toward the $0.50 and $0.4650 levels.
