Cardano’s Uphill Battle: ADA Struggles to Break $0.500 Resistance

May 22, 2024
2:22 pm
Cardano, Cardano Guides, Crypto News, Price Analysis

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Recent movements in Cardano’s ADA price have been exciting investors and drawing their close attention. However, the price is struggling intensely to gain momentum above the $0.50 zone. Despite trading above $0.480, ADA is trying to keep its upward potential alive by maintaining these support levels.

Upward Trend Line Emerges

Technical analysis reveals a clear upward trend line in the hourly chart of the ADA/USD pair. This trend line indicates that the price found strong support around $0.480 and that the upward trend could continue before falling below this level.

Resistance Levels Pose Challenges

Nonetheless, it is essential to consider resistance levels as well as support. The $0.4980 region is currently identified as a critical resistance point for the price. Furthermore, the first resistance is around $0.510, and surpassing this level could be a crucial step for further gains.

Potential Decline and Support Levels

Cardano’s (ADA) price has struggled to break above the $0.4980 resistance level in recent days. This situation could be interpreted as a potential signal for a decline in the cryptocurrency. If the price fails to surpass this level, another downward trend may begin, possibly moving towards an immediate support level of $0.450.

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Currently, the next critical support point for ADA is around $0.480. If the price breaks this level, it could open the doors for a test of $0.4620. However, a break below this level could signal further declines, with the next major support point expected around $0.450.

Technical Indicators Point to Bearish Momentum

Technical indicators provide some clues about the future of the price. The hourly MACD metric gains momentum in the bearish zone for the ADA/USD pair, indicating that the price is in a downward movement. Additionally, the hourly RSI (Relative Strength Index) is currently below the 50 level, suggesting that selling pressure continues.

In conclusion, while ADA has been trying to maintain its upward potential, it faces significant resistance at the $0.4980 level. If the cryptocurrency fails to break through this resistance, it may face a decline towards the critical support levels mentioned. Investors should closely monitor the technical indicators and the price action to make informed decisions regarding their ADA holdings.