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Cardano Price Analysis: ADA Crashed 10% Daily Following Failure to Overcome $3

Summary:
ADA/USD – ADA Spikes Lower Into .382 Fib Key Support Levels: .50, .26, .00.Key Resistance Levels: .76, .00, .20. ADA has been battling the .00 resistance level since the end of August. The coin was trading inside an ascending price channel throughout the entire month, which allowed it to surge above the level. In September, ADA fell beneath the price channel after failing to overcome after multiple attempts over the weekend. Yesterday, it fell into the support at .75 (20-day MA & .236 Fib). It continued to spike further lower today as it reached as low as .50 (.382 Fib) for a 10% daily crash. It has bounced slightly from there as it trades above .60, but the recent pullback should have been expected after the market was rejected at on numerous

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ADA/USD – ADA Spikes Lower Into .382 Fib

Key Support Levels: $2.50, $2.26, $2.00.
Key Resistance Levels: $2.76, $3.00, $3.20.

ADA has been battling the $3.00 resistance level since the end of August. The coin was trading inside an ascending price channel throughout the entire month, which allowed it to surge above the $3 level.

In September, ADA fell beneath the price channel after failing to overcome $3 after multiple attempts over the weekend. Yesterday, it fell into the support at $2.75 (20-day MA & .236 Fib). It continued to spike further lower today as it reached as low as $2.50 (.382 Fib) for a 10% daily crash.

It has bounced slightly from there as it trades above $2.60, but the recent pullback should have been expected after the market was rejected at $3 on numerous attempts.

adausd-sep7-min
ADA/USD Daily Chart. Source: TradingView.

ADA-USD Short Term Price Prediction

Looking ahead, the first support lies at $2.50 (.382 Fib). This is followed by $2.26 (.5 Fib), $2.00 (.618 Fib & 50-day MA), and $1.80 (100-day MA).

On the other side, the first resistance lies at $2.75 (20-day MA). This is followed by the resistance at $3, $3.20 (1.414 Fib Extension), $3.42 (1.272 Fib Extension), and $3.66 (1.414 Fib Extension – purple).

The RSI has been showing hidden bearish divergence over the past week and recently started to head lower, indicating that the previous bullish momentum was losing steam. It is now near the midline, which shows there is indecision within the market.

ADA/BTC – Bulls Fall Into June Highs

Key Support Levels: 5080 SAT, 4890 SAT, 4712 SAT.
Key Resistance Levels: 5550 SAT, 6000 SAT, 6200 SAT.

ADA also rolled over last week at 6000 SAT after failing to break above the resistance after multiple attempts. Yesterday, ADA dropped beneath the 20-day MA at around 5550 SAT and continued to fall beneath 5500 SAT.

Today, ADA continued to slide against BTC as it dropped as low as 4890 SAT (June 2021 high). It has since bounced from this support as it trades near 5200 SAT.

adabtc-sep7-min
ADA/BTC Daily Chart. Source: TradingView.

ADA-BTC Short Term Price Prediction

Moving forward, the first support lies at 5080 SAT (.382 Fib). This is followed by 4890 SAT (June high), 4712 SAT (.5 Fib), and 4500 SAT (50-day MA).

On the other side, the first resistance lies at 5550 SAT (20-day MA). This is followed by the strong resistance at 6000 SAT, 6200 SAT (1.414 Fib Extension), and 6500 SAT.

The RSI recently dipped beneath the midline, suggesting that the bears might be attempting to take control of the market momentum.

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