Cardano (ADA) started a fresh decline after it failed to clear the $1.20 resistance. The price is now at risk of more losses below $0.75 and $0.70.
Cardano Price Nosedives
Yesterday, after Trump’s announcement ADA price saw a massive increase from the $0.580 support. It surged over 60% and broke many hurdles near $0.750. There was a clear wave above the $0.850 resistance zone and the 50-day simple moving average (blue).
There was a spike above a crucial declining channel with resistance at $1.00 on the daily chart. However, the bears remained active near the $1.180 and it turned out to be a false break. Cardano started a fresh decline below the $1.00 support, like Ethereum and Bitcoin.
ADA price is now down over 20% and is back below the 50-day simple moving average (blue). The price traded below the 50% Fib retracement level of the upward move from the $0.5819 swing low to the $1.1760 high.
The bulls are now trying to protect the $0.75 support zone. The current price action is negative and suggests a high chance of more losses.
If there is a recovery wave, immediate resistance is near the $0.820 level or the 50-day simple moving average (blue). The first hurdle sits near the $0.880 level. To start a fresh increase, Cardano must clear the $0.880 resistance zone.
The main resistance is now forming near the $1.00 level. A close above the $1.00 zone could open the doors for more upsides. The next key resistance could be near the $1.10 zone. Any more gains might send ADA toward the $1.180 level.
More Losses In ADA?
If there is no move above $0.880, ADA price could start another decline. Immediate support is near the $0.750 level. The first major support is near the $0.70 level.
The next major support is near the $0.60 pivot level, below which there is a risk of a drop toward the $0.50 level. Any more losses might increase selling pressure and send Cardano toward $0.440 and the 1.236 Fib extension level of the upward move from the $0.5819 swing low to the $1.1760 high.
Overall, ADA is showing bearish signs below the $0.880 and $1.0 levels. If the bears remain active, Cardano could accelerate lower toward the $0.70 and $0.60 levels.
