Cardano (ADA) continued its downward trend and probed against the $0.360 zone. ADA is now on an upward trend and may make an effort to break over the $0.400 resistance zone.
In spite of being in a negative zone, the price of ADA dropped below $0.40 overall.
The current price is trading below the 100-hourly simple moving average as well as the $0.400 threshold.On the hourly chart of the ADA/USD pair, there is a connecting bullish trend line that is building, and it is forming with support around $0.3760.
If the pair closes higher above $0.400, there is a possibility that positive momentum will be gained.
Price of Cardano Continues to Be in the Negative Zone
Over the course of the previous several days, Cardano has begun a downward movement similar to that of Bitcoin and Ethereum after it was unable to overcome the resistance level of $0.450. Additionally, ADA tested the $0.360 zone after falling below the $0.400 support level.
At the price of $0.360, a low was established, and the price is now repairing losses. Above the $0.3750 zone, there was a little wave of recovery that occurred. Price increased to a level that was higher than the 50% Fibonacci retracement level of the negative move that occurred from the swing high of $0.4204 to the low of $0.3600.
On the hourly chart of the ADA/USD pair, there is also a connecting bullish trend line that is forming with support around $0.3760 where it is now located. In spite of this, there are a lot of obstacles on the upside for the price.
The price of ADA is still trading below $0.400 and the simple moving average for the 100-hour time frame. The immediate barrier on the upside is located close to the $0.3980 zone, which is also the 61.8% Fibonacci retracement level of the negative move that occurred from the $0.4204 swing high to the $0.3600 low area.
A resistance level close to $0.400 is the first one. The next significant barrier might be found around $0.410. It is possible that the price will begin a powerful rally if it is able to close higher than the resistance level of $0.410. Given the circumstances, it is possible that the price may increase to the region of $0.4250. A climb toward $0.450 could be necessary if there are any more advances.
In the event that the price of Cardano is unable to break through the resistance level of $0.400, it may initiate yet another market downturn. The $0.3850 level is close to the immediate support that is located on the downside.
Near the level of $0.380 and the trend line is where the next significant support may be found. In the event that the price breaks below the $0.380 level, it may be possible for the price to test the $0.3650 level. Located close to the $0.360 level is the next significant support.