Cardano price started a downward correction below the $1.00 area. ADA is consolidating and facing barriers near the $0.920 and $0.950 levels.
- The price of ADA started to fall below the $1.00 support area.
- The price is trading below $0.950 and the 100 hourly simple moving average.
- There is a connecting bearish trendline forming resistance at $0.92 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair can start another rise if it clears the $0.950 resistance area.
Cardano Price Begins New Downtrend
After struggling to clear the $1.00 resistance area, Cardano started a new low, like Bitcoin and Ethereum. ADA declined below the $0.9650 and $0.950 support levels.
A recent high was formed at $0.9495 before the price dipped. There was a move below the $0.920 support level. The price declined below the 50% Fib retracement level of the upward move from the $0.8628 low to $0.9495 high.
Cardano price is now trading below $0.925 and the 100-hour simple moving average. On the other hand, the price may face resistance near the $0.920 area. There is also a bearish connecting trend line forming with resistance at $0.92 on the hourly chart of the ADA/USD pair.
Initial resistance is near $0.9350. The next key resistance could be $0.950. If there is a close above the resistance of $0.950, the price can start a strong rally. In the mentioned case, the price can go up to the $1.00 area. Any further gains would require a move to $1.050 in the near term.
More Losses in the ADA?
If the price of Cardano fails to rise above the resistance level of $0.920, it can start another decline. Immediate support on the downside is near the $0.8950 level or the 61.8% Fib retracement level of the upward move from the $0.8628 low to $0.9495 high.
The next major support is near the $0.865 level. A break below the $0.8650 level could open the doors to a test of $0.820. The next major support is near the $0.8050 level where the bulls may emerge.
Technical References
Hourly MACD – The MACD of ADA/USD is gaining momentum in bearish territory.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.8950 and $0.8650.
Major Resistance Levels – $0.920 and $0.950.
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