Cardano price started a downward correction in the $1.325 area. ADA is consolidating and faces hurdles near the $1.20 and $1.240 levels.
- ADA price began a downward trend after failing to stay above $1.30.
- The price is trading below $1.20 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 $1.20 (data source from Kraken).
- Breaking out of the $1.240 resistance area, the pair could begin another rally.
Cardano price eye fresh hike
After struggling above $1.30, Cardano began a downward correction. ADA fell below the $1.20 level, underperforming Bitcoin and Ethereum. The price also surged below $1.150 before an upward trend took place.
A low was formed at $1.1173 before the price began a new rise. There was movement above the $1.140 and $1.1550 resistance levels. The price crossed above the 50% Fib retracement level moving down from the $1.326 swing high to the $1.117 low.
However, the bears are currently active near the $1.25 area. They protected the 61.8% Fib retracement level of the downside move from the $1.326 swing high to the $1.117 low.
Cardano price is currently trading below $1.20 and the 100-hour simple moving average. On the positive side, the price may face resistance near $1.20. The hourly chart of the ADA/USD pair also has a major bearish trendline forming resistance at $1.20.
The first resistance is near $1.2250. The next major resistance could be $1.2450. If the price closes above the $1.2450 resistance, the price could begin a strong rally. If indicated, the price may rise to the $1.2780 region. Any more profits may require a move towards $1.320.
Another decline in ADA?
If Cardano’s price fails to break above the $1.20 resistance level, another decline could begin. Immediate support for the downside is near the $1.150 level.
The next major support is near the $1.120 level. A bearish break below the $1.120 level could open the door to a test of $1.080. The next major support is near the $1.0450 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 – $1.120 and $1.080.
Key resistance levels – $1.20 and $1.2450.