Cardano (ADA) Faces Trouble at Key Support — Is a Breakdown Looming?

Cardano price started a fresh decline below the $0.680 zone. ADA is now consolidating and might struggle to stay above the $0.620 support.

• ADA price started a fresh decline below $0.70 and $0.680.

• The price is trading below $0.680 and the 100-hourly simple moving average.

• There is a key bullish trend line forming with support at $0.630 on the hourly chart of the ADA/USD pair (data source from Kraken).

• The pair could start a fresh decline if it dips below the $0.620 support zone.

Cardano Price Dips Further

In the past few days, Cardano saw a fresh decline below the $0.720, unlike Bitcoin and Ethereum. ADA even declined below the $0.70 level to enter a bearish zone.

The bears even pushed the price below the $0.680 level. A low was formed at $0.6134 and the price recently corrected some losses. There was a move above the $0.620 and $0.6350 levels. The price climbed above the 23.6% Fib retracement level of the downward move from the $0.7311 swing high to the $0.6134 low.

However, the bears remained active near $0.6560. Cardano price is now trading above $0.620 and the 100-hourly simple moving average. Besides, there is a key bullish trend line forming with support at $0.630 on the hourly chart of the ADA/USD pair.

On the upside, the price might face resistance near the $0.650 zone. The first resistance is near $0.6560. The next key resistance might be $0.6720. It is close to the 50% Fib retracement level of the downward move from the $0.7311 swing high to the $0.6134 low.

If there is a close above the $0.6720 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.70 region. Any more gains might call for a move toward $0.7350 in the near term.

Another Drop In ADA?

If Cardano’s price fails to climb above the $0.6720 resistance level, it could start another decline. Immediate support on the downside is near the $0.630 level.

The next major support is near the $0.620 level. A downside break below the $0.620 level could open the doors for a test of $0.60. The next major support is near the $0.5650 level where the bulls might emerge.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.

Major Support Levels – $0.630 and $0.620.

Major Resistance Levels – $0.6560 and $0.6720.