ADA is the native cryptocurrency of Cardano blockchain network, which is used for transactions, staking and as a means of participating in platform governance. Recently, ADA price has been on a downward trend and from the looks of it, the token shows no signs of reversing anytime soon.
ADA on the 4-hour chart
At the time of writing, ADA price is down over 30% from its previous high of $0.8107. The crypto asset is currently trading around $0.4604 and down around 0.65% over the past 24 hours.
Trendline and 100-day moving average (MA): Using the 4-day time frame, ADA failed to break through the trend, allowing the price to continue falling. If the price continues to decline, it could break out from its previous low of $0.4000 and create a new low.
The price of ADA It is also seen trending below the 100-day simple moving average (SMA) after a successful breakout at $0.5966, suggesting a continued decline in the price.
Relative Strength Index (RSI): The 4-day RSI also shows that price is still on a downtrend because the RSI signal line is still trending below the 50% level. Although the RSI signal line is in the oversold zone, there is still a possibility that the price will continue to fall.
Movement on the 1-day chart
Trendline and 100-day MA: The digital asset on a 1-day time frame continues to move below the 100-day simple moving average and trendline, after failing to cross these lines.
Meanwhile, the RSI also confirms that the price is on a downtrend as the RSI signal line is moving below the 50% level and might continue to fall for some time.
In conclusion, given that ADA failed to move above the 100-day SMA and trendline, if it continues to decline and manages to cross its previous low of $0.4255, it could get closer further from its $0.4000 support level. On the contrary, if the price fails to move below these lows, it could begin an upward move towards its previous resistance level of $0.5243. If it manages to exceed this level, the price could continue to move. to the top to start a new trend in direction.
Featured image from iStock, chart from Tradingview.com
