The cryptocurrency Cardano (ADA) has recently experienced a steady decline from the resistance area of $0.670. Following the path of leading cryptocurrencies, Bitcoin and Ethereum, it fell below the $0.650 and $0.620 levels, entering a downtrend. What levels should be watched for the cryptocurrency ADA from this point on?
Altcoin Cardano (ADA) in a Downtrend
ADA’s price dropped below the $0.580 level, tested $0.560, and experienced a slight recovery from there. Currently, ADA’s price is consolidating around $0.5592, reflecting a recent low level.
According to technical analysis, the cryptocurrency ADA is trading below the $0.620 level, which is under the 100 simple moving average. Additionally, there is a significant downtrend line on the 4-hour chart, marked by the $0.6008 resistance.
At present, a significant upward resistance is located near the $0.6010 level. However, if the price closes above the $0.6280 level, it should not be ignored that a strong rally could start. In this scenario, a move towards the $0.6550 region could be possible, and surpassing the resistance level of $0.670 might be necessary for further gains.
What Are the Critical Levels?
Cryptocurrency ADA could potentially face further downward momentum. If the bulls manage to protect the critical support at $0.560, the possibility of a new upward attempt should not be overlooked. On the other hand, if ADA’s price fails to rise above the $0.6150 level, it could indicate that the price may continue to trend downward.
The current immediate support is near the $0.560 level. However, if this support is also broken, the next significant support point is expected around $0.520. A drop below these levels could lead to a test of $0.50. The strongest support is found around $0.4880.
Technical indicators are also not very promising. The 4-hour MACD is gaining momentum in the bearish zone for ADA/USD. The RSI (Relative Strength Index) is currently trending below the 50 level, which could be considered a negative sign.
