- ADA price plummeting
- Bearish momentum will likely extend towards $0.07
- ADA/USD pair to struggle near the $0.085 support and $0.09 in case of a bull trend
Cardano price action is currently embarking on a red trail and trading beneath the $0.09 price level against the United States dollar. Same as bitcoin and the majority of altcoins in the market, the ADA/USD pair will possibly continue declining given its trading below the $0.09 anchor zone.
Since hitting a new yearly high of $0.15 late in August, Cardano has been on a bearish trend shedding more than 50 percent of its value. The ADA/USD pair has suffered massive losses in the past month, and the trend looks poised to continue.
Cardano price analysis
The ADA/USD pair faced a strong rejection near $0.098, which caused the price to drop clearing various crucial supports like $0.095 and $0.090 along the way. The bearish momentum escalated after the pair cleared the lower part of a critical declining channel with support near $0.0855 on ADA/USD’s 4-hour chart. Currently, ADA is trading near the $0.080 price level below the 55 SMA on the 4-hour daily chart.
The ADA/USD pair formed a new weekly low near $0.078 before correcting to a higher price level. Cardano price action is now trading near the 23.6 percent Fib retracement level of the latest dump from $0.094 swing highs to about $0.077 swing lows. The next resistance zone is near the $0.085 price level.
The resistance zones near $0.085 and $0.86 price levels might be strong enough to stop bulls in their tracks resulting in more losses. Besides, the 50 percent Fib retracement level of the recent drop from $0.094 to $0.077 is situated near $0.086.
The main resistance for the ADA/USD pair is located near the $0.09 price zone and the 55 simple moving average on the pair’s 4-hours chart. If bulls can manage to push Cardano price above this sell-off zone, the cryptocurrency may embark on a fresh upside trend towards $0.098.
On the other hand, the ADA/USD pair might continue progressing in the bear market, moving below $0.08 and $0.07. Cardano’s next critical support lies near $0.075 while the main anchor zone is near $0.072. If the bears can manage to clear these supports, then Cardano price might head towards $0.068.
ADA/USD 4-hour chart
It is evident that ADA is currently trading in a bear market as the chart above indicates, just beyond the $0.085 anchor zone and the 55 simple moving average. The ADA/USD pair will likely face challenges near the $0.085 support zone. According to data provided by IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model, approximately 11,000 addresses bought over 1 billion Cardano tokens near this level.
In other news, yesterday the Cardano Foundation revealed the employement of two new senior employees following heavy criticism from its community. Cardano hired Frederik Gregaard to be its first CEO and Eva Oberholzer as Head of Growth. The appointment aims to boost corporate adoption. Gregaard, who brings a wealth of blockchain technology experience with him, will be based in Switzerland and will be tasked with raising enterprise application in crucial industries.
On the other hand, Oberholzer will fill in the newly created head of growth opening. She will be tasked with representing all the Cardano ecosystem stakeholders. Besides, she will also address the needs of the ecosystem’s stakeholders at the management level.