CARDANO Price Prediction: Can ADA hold the  $0.240 support?

Cardano prices are in turmoil at present. The price drifted lower as the bulls failed to defend a key support level of $0.300. The breach led to a dive of almost 25% and a short trip just below the next daily support of $0.240.

• ADA/USDT is down 1.67% today
• ADA/USDT is trading at crucial levels after dumping by almost 44% from its resistance of $0.428

ADA/USDT is trading at $0.259 as the market is experiencing strong-sell pressure. The bear-dominated market has taken a massive toll on cardano price and the price plunged by almost 44% from its daily resistance. What added to the sell-off was the breakdown of a major trendline which acted as an important support.

The Daily chart shows a strong downtrend.

Source: ADA/USDT by TradingView: https://www.tradingview.com/x/EYt1J5ji/

The Daily chart is a great representation of the overall bearish trend followed by ADA. The sliding prices are adding fuel to the fear present in the market. It all began with a minor uptrend at the start of the year. This uptrend was supported by a trendline that was following the price toward the upside. This pushed the price to the daily resistance zone of $0.428. The Bulls made multiple attempts to sustain above that level. The bears came in strong as the market started to show weakness and the price eventually saw a downfall.

The selling pressure intensified as the price breached the trendline and the market started falling like a knife. This selling pressure plunged the prices by almost 45% sending the market to a very crucial support zone of $0.240. The price saw a swift recovery of almost 12% to its current level. 

The 4H chart shows a minor consolidation

Source: ADA/USDT by TradingView: https://www.tradingview.com/x/imsikuxL/

The 4H chart is giving a closer picture of the bloodbath in the market. At present the price is moving in a consolidated price action. This consolidation is giving a breather to the market to recover from its recent volatility. The Technical indicators are suggesting no signs of major recovery while establishing the presence of selling pressure in the market.

The price is slowly crawling to the support zone where the market will be in a make-it or break-it situation. A breach of the support will trigger a massive sell-off where the price can take a dive of almost 26%. Whereas, the bulls will have to overcome many hurdles to revive the digital asset. The first major resistance will be $0.301 followed by $0.355. Such a move can add 35% to its value. The bulls need to overcome the 200 EMA to gain momentum.

RSI:

The RSI indicator is currently at 40.83 and the RSI has crossed the MA line towards the downside This is a sign of bearish to sideways market condition.

MACD:

The MACD indicator is about to make a bearish crossover and the MACD line is crawling just below the 0 line indicating bearish price action.

200 EMA:

As observed, on the 4hr, the price is trading above the 200 EMA(exponential moving average) which acts as a significant support. This is a clear indication of an uptrend where the buyers are in control and for a trend reversal, the price must break and trade below the 200 EMA.

Technical levels

Support Levels: $0.240 – Support 1

    $0.169 – Support 2

Current Price: $0.487

Resistance Levels: $0.301 – Resistance 1

$0.355 – Resistance 2

Conclusion:

ADA is feeling the heat as bears push the price to important support zones. With every downward movement, the investors are getting worried regarding the future of the asset in the mid to short-term. The revival of this market depends on the ability of the bulls to flip above the daily 200 EMA. At present, the market is volatile and investors should follow strict risk management to minimize losses. A reversal can be possible if the price is able to form some trend reversal pattern on the daily time frame.