Cardano (ADA) is attempting a recovery in the $0.4650 area. A close above the $0.550 resistance could trigger a new rally for ADA.
- ADA price is rising in the $0.4650 area.
- The price is trading below $0.570 and the 100 simple moving average (4-hours).
- On the 4-hours chart of the ADA/USD pair, there is a major bearish trendline forming with resistance near $0.545 (data source from Kraken).
- A clear move above $0.545 and $0.550 could push the pair higher.
Cardano price attempts a new rise
After a strong rally, Cardano was pitted against sellers near $0.675. ADA, unlike Bitcoin and Ethereum, started a fresh decline below the $0.620 and $0.600 support levels.
It fell below the $0.550 support and the 100 simple moving average (4-hours). Finally, the price found support near $0.4650. The price is now attempting a fresh rise above the $0.500 resistance zone. The price tested the 23.3% Fib retracement level moving down from the $0.6768 swing high to the $0.4650 low.
ADA is currently trading below $0.570 and the 100 simple moving average (4-hours). There is also a major bearish trend line forming with resistance near $0.545 on the 4-hours chart of the ADA/USD pair.
On the positive side, immediate resistance is near the $0.532 area. The first resistance is near $0.545 and $0.550. The next major resistance could be the 50% Fib retracement level at $0.570 or a downside move from the $0.6768 swing high to the $0.4650 low.
Source: ADAUSD on TradingView.com
If the price closes above the $0.570 resistance line, the price could begin a strong rally. If stated, the price may rise to the $0.620 region. Any more profits may require a move to $0.650.
Another decline in ADA?
If Cardano’s price fails to break above the $0.545 resistance level, a new downtrend could begin. Immediate support for the downside is near the $0.500 level.
The next major support is near the $0.465 level. A break below the $0.465 level could open the door to a test of $0.432. The next major support is near the $0.420 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 – $0.500, $0.465, $0.432.
Key resistance levels – $0.532, $0.545, $0.570.
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