Cardano's Price Drops 10% Below $0.720, Faces Resistance
1min read Cardano (ADA) has been experiencing a persistent struggle, with its price starting a fresh decline below the $0.720 zone. Despite a recent recovery wave from the $0.650 zone, the cryptocurrency is still trading below $0.720 and the 100-hourly simple moving average. This indicates that ADA is facing significant resistance, with a connecting bearish trend line forming at $0.7050 on the hourly chart of the ADA/USD pair.
In the past few days, Cardano, along with other major cryptocurrencies like Bitcoin and Ethereum, has seen a bearish wave below the $0.7750 level. ADA declined below the $0.750 and $0.720 support levels, testing the $0.650 zone. A low was formed at $0.6495, and the price recently started a recovery wave, climbing above the $0.6950 and $0.70 levels. However, the price is still facing resistance near the $0.7050 zone, with the first major resistance near $0.7520 or the 61.8% Fib retracement level of the downward move from the $0.8170 swing high to the $0.6495 low. The next key resistance might be $0.7750.
If Cardano’s price manages to close above the $0.7750 resistance, it could start a strong rally, potentially rising toward the $0.80 region. Any further gains might call for a move toward $0.850 in the near term. However, if ADA fails to climb above the $0.720 resistance level, it could start another decline. Immediate support on the downside is near the $0.6880 level, with the next major support near the $0.650 level. A downside break below the $0.650 level could open the doors for a test of $0.6350, with the next major support near the $0.620 level where the bulls might emerge.
Technical indicators suggest that the MACD for ADA/USD is losing momentum in the bearish zone, while the RSI for ADA/USD is now below the 50 level. Major support levels are at $0.6880 and $0.6500, while major resistance levels are at $0.7520 and $0.7750. Despite the current struggles, there is still potential for a rebound if ADA can overcome the resistance levels and gain momentum in the bullish zone.
