Cardano (ADA) revised gains and tested the $0.4520 support area. ADA would need to hold above the $0.450 support to initiate a new upward move.
- ADA price is struggling to gain bullish momentum above the $0.4750 area.
- The price is trading below $0.460 and the 100-hour simple moving average.
- On the hourly chart of the ADA/USD pair (data source from Kraken), a breakout occurred above a bearish trend line connecting with resistance at $0.4570.
- A close above $0.4620 could give the pair some bullish momentum.
Cardano price testing support
In the last few sessions, Cardano started a downward trend after failing to clear the $0.4750 resistance level. ADA fell below the $0.4620 support and tested key support at $0.4520, the same as Bitcoin and Ethereum.
A low was formed at $0.4516 and the price is currently consolidating losses. There was a small recovery wave above the $0.4550 area. On the hourly chart of the ADA/USD pair, a breakout occurred above the bearish trend line connecting with the resistance at $0.4570. The pair recently tested the 23.6% Fib retracement level from the $0.4743 swing high to the $0.4516 low.
Cardano is currently trading below $0.4620 and the 100-hour simple moving average. Meanwhile, immediate resistance is located near $0.4960. First resistance is near $0.4620 or the 50% Fib retracement level of the recent decline from the $0.4743 swing high to the $0.4516 low.
The next major resistance could be at $0.4750. If the price closes above the $0.4750 resistance, the price could begin a strong rally. If stated, the price may rise to the $0.50 region. Any more profits may require a move to $0.5250.
Will ADA cause more losses?
If Cardano’s price fails to break above the $0.4620 resistance level, it may continue to decline. Immediate support for the downside is near the $0.4520 level.
The next major support is near the $0.4460 level. A break below the $0.4460 level could open the door to a test of $0.4320. The next major support is near the $0.420 level.
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 – $0.4520, $0.4460 and $0.4320.
Key resistance levels – $0.4620 and $0.4750.