Cardano price started a new decline below the $0.850 area. ADA is currently consolidating and could extend losses below $0.80 support.
- ADA price started a new decline below the $0.850 support area.
- The price is trading below $0.8320 and the 100-hour simple moving average.
- On the hourly chart of the ADA/USD pair, there is a major bearish trendline forming with resistance at $0.820 (data source from Kraken).
- Breaking out of the $0.820 resistance area, the pair could start a new rally.
Cardano price falls further
After a steady increase, Cardano faced sellers near $0.880 and began a downward correction like Bitcoin and Ethereum. ADA fell below the $0.850 and $0.8320 support levels.
The decline even pushed the price below $0.820. A low was formed at $0.8003 and the price is currently consolidating losses. There was a slight increase towards the 23.6% Fib retracement level following the recent decline from the $0.8376 swing high to the $0.8003 low.
Cardano price is currently trading below $0.820 and the 100-hour simple moving average. On the hourly chart of the ADA/USD pair, there is also a major bearish trendline forming with resistance at $0.820.
On the positive side, the price may face resistance near $0.820. First resistance is near $0.8280 or the 76.4% Fib retracement level of the recent decline from the $0.8376 swing high to the $0.8003 low. The next major resistance could be at $0.840.
If the price closes above the $0.840 resistance, the price could begin a strong rebound. If indicated, the price may rise to the $0.8620 region. A short-term move to $0.880 may be necessary to take further profits.
Another decline in ADA?
If Cardano’s price fails to break above the $0.840 resistance level, another decline could begin. Immediate support for the downside is near the $0.80 level.
The next major support is near the $0.780 level. A break below the $0.780 level could open the door to a test of $0.7620. The next major support is near the $0.750 level where the bulls may emerge.
technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.8000 and $0.7800.
Key resistance levels – $0.8200 and $0.8400.