Cardano (ADA) experienced a recent decline in price, failing to surpass the $0.40 mark and subsequently dropping below $0.3850. This downward trend has raised concerns among investors and traders, prompting a closer look at the factors contributing to the decline.
In the last few days, Cardano made an attempt to recover above $0.3650, but was unable to break through the $0.40 resistance level. The price hit a high of $0.3967 before starting a new downward movement. This decline saw the price fall below key support levels, including $0.3880 and $0.3865.
Technical indicators point to further downside potential for ADA. The hourly MACD is showing bearish momentum, while the hourly RSI is below the 50 level. Immediate support levels to watch include $0.3790 and $0.370, with a possible test of $0.350 if the price continues to decline.
Looking ahead, if ADA fails to climb above the $0.3850 resistance level, the price could face additional downward pressure. A break below $0.370 could open the door for a test of $0.350, with major support seen at the $0.3350 level.
While there is potential for further downside in the short term, a close above the $0.40 resistance level could signal a strong rally for Cardano. In this scenario, the price may target the $0.4150 and $0.4250 regions.
In conclusion, Cardano’s recent decline is driven by a failure to break key resistance levels and a broader market sentiment. Traders and investors are advised to monitor support and resistance levels closely and conduct their own research before making any investment decisions. The crypto market is inherently volatile, and caution is always recommended when trading digital assets.