Cardano Technical Analysis: ADA Drops Below Key Levels
Daily Cardano ADA Price Analysis
- Cardano price has managed to flip the 20-day SMA from support to resistance.
- The immediate support levels holding ADA up aren’t particularly strong.
After failing at the $0.354 resistance barrier, the Cardano price has crashed to $0.315. As things stand, a drop to the $0.30 psychological level is in the cards for ADA. Let’s see what’s going on behind the scenes.
Cardano Price Flips Crucial Levels
This Wednesday, the Cardano price managed to flip the 20-day SMA ($0.332) and the $0.318 line from support to resistance. The relative strength index (RSI) shows that there is still some space left for the price to fall before ADA becomes oversold.
Image: ADA/USD daily
Cardano price has a moderate to weak support barrier at $0.307. Previously, at this level, 22,000 addresses had purchased 591 million ADA tokens. If the bears continue their momentum, they could easily overcome this support wall.
In the 4-hour chart, the 20-bar SMA was on the verge of crossing over the 50-bar SMA to form a bullish cross before they diverged away. The MACD also shows increasing bearish momentum, which could signify a further drop in Cardano price.
Image: ADA/USD 4-hour
Cardano Price Is Expected To Reach These Levels
If the Cardano price managed to break below the $0.307 support line, it could break below the $0.30 psychological level and fall to the $0.283 support wall.