Cardano price began a consolidation phase below the $0.6650 area. ADA is holding on to gains and could target a fresh increase above $0.6500.
- ADA price started a downward correction after a strong rally towards $0.6600.
- The price is trading above $0.580 and the 100-hour simple moving average.
- On the hourly chart of the ADA/USD pair, a major contract triangle has formed with support at $0.5780 (data source from Kraken).
- Breaking out of the $0.6060 resistance area, the pair could begin another rally.
Cardano price consolidates gains
Over the past few days, Cardano has shown significant gains above the $0.40 resistance level. ADA has surpassed Bitcoin and Ethereum. There was movement above the $0.450 and $0.50 resistance levels.
It cleared to the $0.600 level. A high was formed at $0.6620 and the price is now consolidating gains. It fell slightly below the $0.6120 level. The price fell below the 23.6% Fib retracement level, rising from the $0.4277 swing low to the $0.6620 high.
However, the uptrend is active above $0.5500 and the 50% Fib retracement level of the upward move from $0.4277 to $0.6620. Cardano price is currently trading above $0.580 and the 100-hour simple moving average.
Additionally, a major contracting triangle is formed on the hourly chart of the ADA/USD pair with support at $0.5780. On the positive side, the price may face resistance near $0.6060. The first resistance is near $0.6230. The next major resistance could be at $0.6450.
If the price closes above the $0.6450 resistance, the price could begin a strong rally. If indicated, the price may rise to the $0.6800 region. Any more profits may require a move towards $0.700.
Will ADA cause more losses?
If Cardano’s price fails to rise above the $0.6060 resistance level, another decline could begin. Immediate support for the downside is near the $0.5780 level.
The next major support is near the $0.550 level. A break below the $0.550 level could open the door to a test of $0.5180. The next major support is near the $0.500 level where the bulls may emerge.
technical indicators
Hourly MACD – MACD for ADA/USD is losing momentum in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.5780 and $0.5500.
Key resistance levels – $0.6060 and $0.6450.