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Bearish Forecast for Cardano Below 0.4746 Key Level

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Cardano has been in a downtrend since March 14, and as of writing, the ADAUSD trades at about 0.44 against the U.S. Dollar. The daily chart below shows how the bulls failed to stabilize the price above the 23.6% Fibonacci, and consequently, the downtrend resumed from the 0.521 mark.

The price floats below the 0.446 support in today’s trading session, demonstrating that the bear market is leading Cardano’s price.

Bearish Forecast for Cardano Below 0.4746 Key Level

Bearish Forecast for Cardano Below 0.4746 Key Level

After analyzing the daily chart, we zoom into the Cardano 4-Hour chart to find key levels that will assist investors and traders in forecasting the next market move.

ADAUSD Technical Analysis – The 4-Hour Chart

The 4-hour chart below clearly shows Cardano’s price in the bear market, but volatility is limited inside the wedge pattern, shown with yellow lines in this technical analysis.

The technical indicators are also bearish, with the RSI hovering below the median line and awesome oscillator bars in red. In addition to the momentum indicators, the ADAUSD price is below EMA 50 and Ichimoku cloud, another signal of the robust downtrend.

ADAUSDH4

Bearish Forecast for Cardano Below 0.4746 Key Level

From a technical standpoint, as long as Cardano trades below the 0.4746 mark, the bearish trend remains valid, and the price will likely dip to the lower line of the wedge pattern followed by the April 19th low, the 0.4174 mark.

Bearish Forecast for Cardano Below 0.4746 Key Level

Bearish Forecast for Cardano Below 0.4746 Key Level

Notably, the standard deviation indicator value is low, around 0.007. This can be construed as the downtrend is slow but consistent. That said, analysts at FxNews predict the sideway momentum will continue inside the wedge pattern, and the bearish targets (0.4174) mentioned above might be achieved by the sellers sometime next week.

Breaking the 0.4746 Barrier and Its Effects on ADAUSD

Breaking the 0.4746 Barrier and Its Effects on ADAUSD

Breaking the 0.4746 Barrier and Its Effects on ADAUSD

The bearish technical analysis should be canceled if the ADAUSD price flips above the 0.4746 mark. This scenario is weak, but if it comes into play, Cardano’s consolidation phase, which began on April 13, will likely aim to test the 0.5214 resistance area.

Key Support and Resistance Levels

  • Resistance: 0.4746, 0.5214
  • Support: 0.4174, 0.3943
  • 8 May 2024
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