Cardano price started a new decline below the $0.3550 area. ADA is consolidating above $0.3400 and may attempt a recovery.
- ADA price started a decline below the $0.3500 support level.
- The price is trading below $0.3550 and the 100-hour simple moving average.
- On the hourly chart of the ADA/USD pair, a break has occurred below the main bullish trendline with support at $0.3600 (data source from Kraken).
- A recovery could be attempted if it breaks out of the $0.3585 resistance area.
Cardano price consolidates losses
After testing $0.3685 resistance, Cardano struggled to hold higher levels. ADA, like 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.
On the hourly chart of the ADA/USD pair, a break has occurred below the main bullish trendline with support at $0.3600. The price also fell below $0.3440 before the upward trend began. A low was formed at $0.3420 and the price is currently correcting losses. There was slight movement above the $0.3480 level.
The price cleared the 23.6% Fib retracement level of the downward move from the $0.3685 swing high to the $0.3420 low. Cardano price is currently trading below $0.3550 and the 100-hour simple moving average.
On the upside, the price may face resistance near the $0.3550 area or the 50% Fib retracement of a downward move from the $0.3685 swing high to the $0.3420 low. The first resistance is near $0.3585. The next major resistance could be at $0.3685.
If the price closes above the $0.3685 resistance line, the price could begin a strong rebound. If indicated, the price may rise to the $0.3780 region. Any more profits may require a move to $0.3950.
Another decline in ADA?
If Cardano’s price fails to rise above the $0.3550 resistance level, another decline could begin. Immediate support for the downside is near the $0.3480 level.
The next major support is near the $0.3420 level. A break below the $0.3420 level could open the door to a test of $0.3250. The next major support is near the $0.3120 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 – $0.3450 and $0.3420.
Key resistance levels – $0.3550 and $0.3685.