Cardano price started a new decline below the $0.3565 area. ADA is consolidating above $0.3420 and may attempt a recovery.
- ADA price began a decline below the $0.3520 support level.
- The price is trading below $0.3500 and the 100-hour simple moving average.
- On the hourly chart of the ADA/USD pair (data source from Kraken), a breakout occurred above the main bearish trendline with resistance at $0.3460.
- A recovery could be attempted once it breaks out of the $0.3520 resistance area.
Cardano price consolidates losses
After testing $0.3700 resistance, Cardano struggled to hold higher levels. ADA, unlike Bitcoin and Ethereum, formed a short-term high and started a new downtrend. It has moved below the $0.3550 and $0.3500 support levels.
The price also fell below $0.3450 before the upward trend took place. A low was formed at $0.3394 and the price is currently consolidating losses. There was slight movement above the $0.3420 level. Price cleared the 23.6% Fib retracement level of the downward move from the $0.3705 swing high to the $0.3394 low.
Moreover, on the hourly chart of the ADA/USD pair, there was a break above the main bearish trend line at the resistance level of $0.3460. Cardano price is currently trading below $0.350 and the 100-hour simple moving average.
On the positive side, the price may face resistance near $0.3515. First resistance is near $0.3550 or the 50% Fib retracement level for a downside move from the $0.3705 swing high to the $0.3394 low. The next major resistance could be at $0.3620.
If the price closes above the $0.3620 resistance, the price could begin a strong rebound. If indicated, the price may rise to the $0.3700 region. Any more profits may require a move to $0.3880.
Are there any more downsides to ADA?
If Cardano’s price fails to break above the $0.350 resistance level, another decline could begin. Immediate support for the downside is near the $0.3420 level.
The next major support is near the $0.3400 level. A break below the $0.3400 level could open the door to a test of $0.3220. The next major support is near the $0.3100 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 – $0.3400 and $0.3220.
Key resistance levels – $0.3500 and $0.3550.