Key Takeaways:
- ADA price is consolidating above the $0.378 support zone.
- It faces a crucial bearish trend line with resistance near $0.395 on the 4-hour chart.
- The price must clear $0.395 and $0.40 to avoid a significant downside break.
NEW DELHI (CoinChapter.com) — Cardano’s ADA struggles to recover above the $0.40 resistance. It could take a major hit if a break is below the $0.378 support.
Cardano (ADA) Price Faces Uphill Task
This past week, ADA attempted an upside break above the $0.412 resistance against the US Dollar. The price spiked toward $0.415, where it faced a strong selling interest. A high was formed near $0.415, with a fresh decline.
The price declined below $0.40 and retested the $0.378 support. A low is formed near $0.3787, and the price is now consolidating losses with a bearish angle below the 50 simple moving average (4 hours, blue), unlike Bitcoin and Ethereum.
There was a minor correction above the $0.390 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $0.4150 swing high to the $0.3787 low.
On the upside, ADA faces strong resistance near the $0.395 level and the 50 simple moving average (4 hours, blue).
There is also a crucial bearish trend line with resistance near $0.395 on the 4-hour chart. In addition, the trend line is close to the 50% Fib retracement level of the downward move from the $0.4150 swing high to the $0.3787 low.
If a break is above the trend line resistance, the price could drift toward the $0.40 resistance. To continue higher, Cardano must settle above $0.40.
The main resistance and breakout zone sits near $0.4185. A daily close above the $0.4185 level is a must to start a steady increase. The next key resistance might be near the $0.430 level, above which the price could test $0.45. In the stated case, ADA might even climb toward $0.50.
Sharp Decline?
If there is no move above the $0.40 resistance, the price might resume its decline. On the downside, ADA price might find support near the $0.380 zone.
The main support sits near the $0.378 level. A downside break and close below the $0.378 support could spark strong bearish moves in Cardano. The price might drop toward the $0.350 support in the stated case.
Overall, ADA is struggling to clear the $0.40 resistance. To start a recovery wave, the price must surpass $0.40. Conversely, there could be a sharp decline below the $0.378 support soon.
