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Cryptocurrency market has been following an uncertain path recently, and Cardano (ADA) is also experiencing these fluctuations. Trading below the $0.50 resistance area, ADA could strengthen its downtrend if it stays below the 100 simple moving average (4-hour). At this point, what levels should ADA investors watch out for?
ADA Price on a Downtrend
Looking at recent price movements, we see ADA coin gradually moving downward from the $0.520 area. The price is currently below $0.50 and the 100 simple moving average. This situation is not a positive sign for the bulls.
ADA/USD pair’s 4-hour chart shows a clear downtrend line. This situation has formed at the $0.4740 resistance level. This poses a significant barrier to any bullish desires. However, if the bulls can sustain their presence above the $0.4280 support level, there is still a chance for the pair to attempt a new rise.
Cardano Highly Affected by Bitcoin and Ethereum
Especially, the similar downtrend within major cryptocurrencies like Bitcoin and Ethereum seems to have influenced ADA to follow a similar path.
The price has recently experienced a significant drop from the $0.520 resistance level and is currently trading below $0.500. It was even observed that the price fell below the $0.4650 level and tested $0.450. This shows the strength of the current downtrend.
ADA Coin Bulls Remain Hopeful
ADA coin bulls still seem to have hope. Particularly, the $0.4740 resistance level, the 100 simple moving average (4-hour), and proximity to the trend line show some upward potential. The first significant resistance level is around $0.4920, and if a close above this level occurs, the possibility of a strong rally for ADA coin could increase.
In case of a downward movement, the price could quickly approach the immediate support level of $0.450. However, if a deeper drop occurs, the next major support point at around $0.4280 will be waiting. A break below this level could lead to a test of $0.40 and potentially start a journey towards the main support level at $0.3880.
Looking at the technical indicators, the hourly MACD is gaining momentum in the bearish zone for ADA/USD. This could indicate support for a potential downward move. Additionally, the hourly RSI (Relative Strength Index) is currently below the 50 level, which could indicate continued selling pressure.
