Cardano price started a new low from the $0.3850 resistance. ADA is rallying above $0.3350 and may attempt a wave of recovery.
- ADA price started to fall below the support level of $0.3550.
- The price is trading below $0.350 and the 100 hourly simple moving average.
- There is a short-term bearish trend line forming resistance at $0.3480 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair can continue to decline if it stays below the $0.360 resistance area.
Cardano Price Dips Again
After testing the $0.4150 resistance, 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 $0.3850 and $0.3650 support levels.
The price even dropped below $0.350 before the bulls emerged. A low was formed at $0.3360 and the price is now covering losses. There was little movement above the $0.3420 level. The price tested the 23.6% Fib retracement level to the downside from the $0.3853 high to $0.3360 low.
Cardano price is now trading below $0.360 and the 100-hour simple moving average. On the other hand, the price may face resistance near the $0.3500 area. There is also a short-term bearish line forming resistance at $0.3480 on the hourly chart of ADA/USD.
Initial resistance is near $0.360 or the 50% Fib retracement level of the downside from $0.3853 swing high to $0.3360 low. The next key resistance would be $0.3740. If there is a close above the resistance of $0.3740, the price can start a strong rally. In the mentioned scenario, the price could rise to the $0.400 area. Any further gains would require a move to $0.4150.
More downsides to the ADA?
If the price of Cardano fails to rise above the resistance level of $0.3500, it can start another decline. Immediate support on the downside is near the $0.340 level.
The next major support is near the $0.3350 level. A break below the $0.3350 level could open the doors to a test of $0.3220. The next major support is near the $0.300 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 – $0.3400 and $0.3350.
Major Resistance Levels – $0.3500 and $0.3600.