DOOKV Cardano Faces Market Challenges and Price Volatility

Cryptocurrency market has been following an uncertain path recently, and Cardano (ADA) is also experiencing these fluctuations. Trading below the $0.50 resistance area, ADA could strengthen its downtrend if it stays below the 100 simple moving average (4-hour). At this point, what levels should ADA investors watch out for?

ADA Price on a Downtrend

Looking at recent price movements, we see ADA coin gradually moving downward from the $0.520 area. The price is currently below $0.50 and the 100 simple moving average. This situation is not a positive sign for the bulls.

ADA/USD pair’s 4-hour chart shows a clear downtrend line. This situation has formed at the $0.4740 resistance level. This poses a significant barrier to any bullish desires. However, if the bulls can sustain their presence above the $0.4280 support level, there is still a chance for the pair to attempt a new rise.

Cardano Highly Affected by Bitcoin and Ethereum

Especially, the similar downtrend within major cryptocurrencies like Bitcoin and Ethereum seems to have influenced ADA to follow a similar path.

The price has recently experienced a significant drop from the $0.520 resistance level and is currently trading below $0.500. It was even observed that the price fell below the $0.4650 level and tested $0.450. This shows the strength of the current downtrend.

ADA Coin Bulls Remain Hopeful

ADA coin bulls still seem to have hope. Particularly, the $0.4740 resistance level, the 100 simple moving average (4-hour), and proximity to the trend line show some upward potential. The first significant resistance level is around $0.4920, and if a close above this level occurs, the possibility of a strong rally for ADA coin could increase.