Cardano price started a downward correction from the $1.325 area. ADA is consolidating and facing barriers near the $1.20 and $1.240 levels.
- ADA price started to pull back after it failed to stay above $1.30.
- The price is trading below $1.20 and the 100-hour simple moving average.
- There is an important bearish trend line forming resistance at $1.20 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair can start another rise if it clears the $1.240 resistance area.
Cardano Price Eyes Fresh Increase
After struggling above $1.30, Cardano began a lower correction. ADA underperformed Bitcoin and Ethereum with a drop below the $1.20 level. The price dropped to $1.150 before the bulls appeared.
A low was formed at $1.1173 before the price started a new uptrend. There was a move above the $1.140 and $1.1550 resistance levels. The price crossed the 50% Fib retracement level to the downside from the $1.326 swing high to the $1.117 low.
However, the bears are now active near the $1.25 area. They secured the 61.8% Fib retracement level to the downside from the $1.326 swing high to the $1.117 swing low.
The price of Cardano is now trading below $1.20 and the 100-hour simple moving average. On the other hand, the price may face resistance near the $1.20 area. There is also a key bearish line forming with resistance at $1.20 on the ADA/USD hourly chart.
Initial resistance is near $1.2250. The next key resistance would be $1.2450. If there is a close above the $1.2450 resistance, the price can start a strong rally. In the mentioned case, the price could rise to the region of $1.2780. Any further gains would require a move to $1.320.
Another Objection to the ADA?
If the price of Cardano fails to rise above the resistance level of $1.20, it can start another decline. Immediate support on the downside is near the $1.150 level.
The next major support is near the $1.120 level. A break below the $1.120 level could open the doors to a test of $1.080. The next major support is near the $1.0450 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 – $1.120 and $1.080.
Major Resistance Levels – $1.20 and $1.2450.
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