Cardano (ADA) is trimming gains near the $0.80 resistance zone. ADA could start a fresh hike if it stays above the $0.6880 support area.
- ADA price is slowly coming down from the $0.80 area.
- The price is trading below $0.720 and the 100 simple moving average (4-hours).
- On the 4-hours chart of the ADA/USD pair, there is a major bullish trendline forming around support at $0.6880 (data source from Kraken).
- If the bulls remain active above the $0.680 support, the pair could attempt a fresh increase.
Cardano price reaches key support
After forming a base above the $0.580 level, Cardano started a new rally. ADA price could move beyond the $0.620 and $0.680 resistance levels and into positive territory like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.700 resistance zone. However, bears remained active near the $0.80 resistance zone. A high was formed near $0.8097 and the price began a downward correction. There was a move below the $0.750 level.
Prices fell below the 23.6% Fib retracement level of the bullish wave from the $0.5754 swing low to the $0.8097 high. ADA price is currently trading below $0.7250 and the 100 simple moving average (4-hours).
There is also a major bullish trend line forming with support at $0.6880 on the 4-hours chart of the ADA/USD pair. The trend line is near the 50% Fib retracement level of the bullish wave from the $0.5754 swing low to the $0.8097 high.
Source: ADAUSD on TradingView.com
Bulls may remain active near the $0.680 support. On the positive side, immediate resistance is located near the $0.7220 area. The first resistance is near $0.740. The next major resistance could be $0.800. If the price closes above the $0.800 resistance line, the price could begin a strong rebound. If indicated, the price may rise to the $0.8250 region. Any more profits may require a move to $0.850.
Will ADA cause more losses?
If Cardano’s price fails to break above the $0.7220 resistance level, it may continue to decline. Immediate support for the downside is near the $0.6880 level.
The next major support is near the $0.680 level. A break below the $0.680 level could open the door to a test of $0.6350. The next major support is near the $0.6120 level.
technical indicators
4-Hour MACD – The MACD for ADA/USD is losing momentum in bearish territory.
4-Hour RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.6880, $0.6800 and $0.6350.
Key resistance levels – $0.7220, $0.7400 and $0.8000.
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