ADA’s Price Drops To Immediate Support Level: What’s Next?

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ADA Price Drops To Immediate Support Level
  • Bearish pressure has forced ADA’s price down to $0.4314.
  • ADA’s price is down more than 7.5% over the past 24 hours.
  • Technical analysis on ADA’s daily chart suggests that ADA’s price will drop more.

Cardano’s price was impacted by a bearish move as it declined from $0.48 to its current level at around $0.4314 according to the crypto market tracking website, CoinMarketCap.

At the time of writing, the price of Cardano (ADA) experienced a 24 hour loss of more than 7.5%. Furthermore, the 24 hour movement has pushed the weekly performance of ADA into the red as well, as the coin finds its price almost 6% weaker to the U.S. dollar than it was a week ago.

ADA’s price now rests at its immediate support of $0.43 after breaking below the $0.44 level – a level that it was able to trade above for a sustained period of time.

Daily chart for ADAUSDT
Daily chart for ADA/USDT Source: CoinMarketCap

Looking at the daily chart for ADA/USDT, ADA’s price attempted to rise above $0.4737 but was met with bear dominance that resulted in a steep drop to the current level.

The daily Relative Strength Index (RSI) indicator is in oversold territory and is positioned well below the RSI SMA line. Additionally, the slope of the daily RSI line is negative – signaling that the bearish move may not be over yet.

Another bearish flag is the position of the 9 and 20 Exponential Moving Average (EMA) lines. At the moment, the shorter EMA line is positioned below the longer 20 EMA line. The difference between the two lines on the daily chart is also increasing, which is indicative of increasing sell activity.

Should the current support level fail to hold, then the price of ADA could drop to $0.4175. However, should the slope of the RSI line turn more positive it could be an early indication of a recovery for ADA, which will invalidate the bearish thesis.

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