Cardano (ADA) Price Analysis: Risk Of More Downsides Below $2

Republished By Plato

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ADA price is struggling to clear the $2.32 and $2.45 resistance levels against the US Dollar.
The price is now trading below $2.30 and the 55 simple moving average (4-hours).
There is a key bearish trend line forming with resistance near $2.40 on the 4-hours chart (data feed via Bitfinex).
The price remains at a risk of more downsides below $2.05 and $2.00.

Cardano price is struggling below the $2.50 resistance against the US Dollar, similar to bitcoin. ADA price must clear $2.45 to start a fresh increase.

Cardano Price Analysis

After a sharp decline, cardano price an upside correction above $2.20 against the US Dollar. The ADA/USD pair cleared the $2.32 resistance and the 55 simple moving average (4-hours).

However, the price struggled to gain pace for a move above the $2.45 level. A high was formed near $2.45 and the price started a fresh decline. There was a break below the $2.40 and $2.32 levels. The price traded below the 50% Fib retracement level of the upward move from the $1.91 swing low to $2.45 high.

It is now trading below $2.30 and the 55 simple moving average (4-hours). There is also a key bearish trend line forming with resistance near $2.40 on the 4-hours chart.

On the downside, an immediate support is near the $2.12 level. It is close to the 61.8% Fib retracement level of the upward move from the $1.91 swing low to $2.45 high. The main support sits near the $2.00 level. Any more losses might call for a sharp decline to $1.85 in the near term.

An initial resistance on the upside is near the $2.22 level and the 55 simple moving average (4-hours). The first major resistance is forming near the $2.32 level. The main resistance is near the $2.45 level. If there is an upside break above the $2.45 zone, the price could rally above $2.50. The next major resistance could be near the $2.85 level.

Cardano (ADA) Price

The chart indicates that ADA price is now trading below $2.35 and the 55 simple moving average (4-hours). Overall, the price remains at a risk of more downsides below $2.05 and $2.00.