Cardano (ADA) is trimming gains at the $0.642 resistance zone. ADA could start a new rally if it stays above the $0.5550 support area.
- ADA price is showing some signs of weakness below the $0.600 level.
- The price is trading above $0.5550 and the 100 simple moving average (4-hours).
- A break occurred below the main bullish trendline with support at $0.610 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
- If the bulls remain active above the $0.570 support, the pair could attempt a fresh increase.
Support for Cardano price decline
After forming a base above the $0.520 level, Cardano started a new rally. ADA price could move beyond the $0.555 and $0.565 resistance levels and into positive territory like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.600 resistance zone. However, the bears remained active near the $0.6420 resistance zone. A high was formed near $0.6419 and the price began a downward correction. There was a move below the $0.600 level.
Additionally, a break occurred below the main bullish trendline with support at $0.610 on the 4-hours chart of the ADA/USD pair. The price fell below the 23.6% Fib retracement level, rising from the $0.4718 swing low to the $0.6419 high.
ADA price is currently trading below $0.600 and the 100 simple moving average (4-hours). Bulls may remain active near the $0.5700 support or the 50% Fib retracement rising from the $0.4718 swing low to the $0.6419 high.
Source: ADAUSD on TradingView.com
Meanwhile, immediate resistance is located near $0.600. The first resistance is near $0.612. The next major resistance could be at $0.620. If the price closes above the $0.620 resistance, the price could begin a strong rebound. If stated, the price may rise to the $0.642 region. Any more profits may require a move to $0.680.
Will ADA cause more losses?
If Cardano’s price fails to break above the $0.600 resistance level, it may continue to fall. Immediate support for the downside is near the $0.570 level.
The next major support is near the $0.5550 level. A break below the $0.5500 level could open the door to a test of $0.5120. The next major support is near the $0.500 level.
technical indicators
4-Hour MACD – The MACD for ADA/USD is losing momentum in bullish territory.
4-Hour RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.570, $0.5550 and $0.5120.
Key resistance levels – $0.600, $0.6120, $0.6420.
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