Cardano price started a new low below the $0.3550 area. ADA is rallying above $0.3400 and may attempt a wave of recovery.
- ADA price started to fall below the $0.3500 support level.
- The price is trading below $0.3520 and the 100-hour simple moving average.
- There is an important bearish trend line forming resistance at $0.3460 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair can continue to decline if it stays below the $0.3520 resistance area.
Cardano Price Consolidates Losses
After testing resistance at $0.3680, Cardano struggled to continue higher. ADA formed a short-term peak and started new lows like Bitcoin and Ethereum. There was a move below the $0.3550 and $0.3500 support levels.
The price dropped below $0.3450 before the bulls appeared. A low was formed at $0.3409 and the price is now covering losses. There was little movement above the $0.3450 level. The price tested the 23.6% Fib retracement level to the downside from $0.3681 swing high to $0.3409 low.
Cardano price is now trading below $0.3520 and the 100-hour simple moving average. On the other hand, the price may face resistance near the $0.3460 area. There is also a key bearish line forming resistance at $0.3460 on the ADA/USD hourly chart.
Initial resistance is near $0.3520 or the 50% Fib retracement level of the downside from $0.3681 swing high to $0.3409 low. The next key resistance would be $0.3550. If there is a close above the $0.3550 resistance, the price can start a strong rally. In the mentioned scenario, the price could rise to the region of $0.3680. Any further gains would require a move to $0.400.
More downsides to the ADA?
If the price of Cardano fails to rise above the resistance level of $0.3550, it can start another decline. Immediate support on the downside is near the $0.3420 level.
The next major support is near the $0.3400 level. A break below the $0.3400 level could open the doors to a test of $0.3250. The next major support is near the $0.3120 level where the bulls may emerge.
Technical References
Hourly MACD – MACD of ADA/USD is losing momentum in bearish territory.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.3400 and $0.3350.
Major Resistance Levels – $0.3460 and $0.3550.
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