Cardano (ADA) Price Analysis: More Downsides Possible Unless It Breaks $0.16

• ADA price started a decline increase after forming a top near the $0.1760 zone the against the US Dollar.
• The price is now trading below the $0.1600 level and the 55 simple moving average (4-hours).
• There was a break below a major bullish trend line with support near $0.1640 on the 4-hours chart (data feed via Kraken).
• The price could resume its decline unless there is a clear break above $0.1600 and $0.1620.

Cardano price is back below the $0.1600 support against the US Dollar, similar to bitcoin. ADA price must surpass $0.1600 and $0.1620 to resume its rise in the near term.

Cardano Price Analysis

Cardano price climbed higher steadily after it broke $0.1600 against the US Dollar. The ADA/USD pair even cleared the $0.1650 and $0.1700 resistance levels. A high was formed near $0.1763 before it started a fresh decline.

There was a sharp drop below the $0.1650 and $0.1600 support levels. The price even settled below $0.1600 and the 55 simple moving average (4-hours). During the decline, there was a break below a major bullish trend line with support near $0.1640 on the 4-hours chart.

ADA broke the 50% Fib retracement level of the key upward move from the $0.1300 swing low to $0.1763 high. Finally, it found support near the $0.1480 level.

It seems like the 61.8% Fib retracement level of the key upward move from the $0.1300 swing low to $0.1763 high acted as a strong support. The price is currently recovering higher and trading above $0.1550. However, the price is facing a strong resistance near the $0.1600 level and the 55 simple moving average (4-hours).

There is also a connecting bearish trend line forming near the $0.1620 level. A successful close above the $0.1600 resistance, with a follow up move above the $0.1620 level could initiate a fresh increase.

The next key resistance is near the $0.1700 level. Conversely, the price could fail to climb above $0.1600 and $0.1620. In the stated case, there is a risk of a fresh dip towards $0.1500 or even $0.1480.

Cardano (ADA) Price

The chart indicates that ADA price is showing a few bullish signs above $0.1550, but it is still below the 55 SMA. Overall, the price could resume its decline unless there is a clear break above $0.1600 and $0.1620.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is slowly gaining pace in the bullish zone.

4 hours RSI – The RSI for ADA/USD is currently rising towards the 50 level.

Key Support Levels – $0.1550 and $0.1500.

Key Resistance Levels – $0.1600 and $0.1620.

Tags: ADA, Cardano