Cardano price extended its uptrend above the $0.4350 resistance level. ADA is currently consolidating its uptrend and is likely to drop towards the $0.4250 support level.
- ADA price rose and tested the $0.4565 level.
- The price is trading above $0.4320 and the 100 hourly simple moving average.
- A major bullish trend line broke with support at $0.4400 on the hourly chart of the ADA/USD pair (data source: Kraken).
- The pair may decline and test the support zone of $0.4250.
Cardano price shows signs of short-term weakness
Over the past few days, Cardano has gained momentum moving above the $0.40 resistance zone. Like Bitcoin and Ethereum, ADA has broken through the $0.420 and $0.4250 resistance levels.
It broke the $0.450 resistance and tested $0.4650. A high was formed at $0.4680 and the price is currently correcting its uptrend. It moved below the $0.4450 and $0.4400 support levels. It broke below the major bullish trend line with support at $0.4400 on the hourly chart of the ADA/USD pair.
A low was formed at $0.4359 and the price is stuck in a range. ADA price is currently trading above $0.4320 and the 100-hourly SMA. If there is another uptrend, the price may face resistance near the $0.4465 area and the 50% Fib rectification level of the downtrend from the $0.4568 swing high to the $0.4359 low.
The first resistance level is near $0.450. The next major resistance level could be $0.4650. If there is a close above the $0.4650 resistance level, the price could start a strong rally. If indicated, the price could rise to the $0.4880 area. Further upside could require a move to $0.500.
ADA Downward Correction?
A downward correction may begin if Cardano price fails to break above the $0.4465 resistance level. Immediate support for the decline is near the $0.4360 level.
The next major support level is near the $0.4250 level. A drop below the $0.4250 level could open the door for a test of $0.4050. The next major support level is near the $0.400 level.
Technical indicators
Hourly MACD – The MACD for ADA/USD is losing momentum in a bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.
Key support levels – $0.4360 and $0.4250.
Key resistance levels – $0.4465 and $0.4650.