Cardano price started a fresh decline below the $1.050 zone. ADA is consolidating and might struggle to start a fresh increase above the $1.0250 level.
- ADA price started a fresh decline from the $1.150 zone.
- The price is trading below $1.0550 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at $1.040 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could start another increase if it clears the $1.050 resistance zone.
Cardano Price Faces Hurdles
After struggling to stay above the $1.150 level, Cardano started a fresh decline unlike Bitcoin and Ethereum. ADA declined below the $1.050 and $1.0350 support levels.
It even spiked below $1.00. A low was formed at $0.9615 and the price is now attempting to recover. There was a move above the $0.990 level. The price cleared the 23.6% Fib retracement level of the downward move from the $1.088 swing high to the $0.9615 low.
Cardano price is now trading below $1.050 and the 100-hourly simple moving average. On the upside, the price might face resistance near the $1.0250 zone. It is near the 50% Fib retracement level of the downward move from the $1.088 swing high to the $0.9615 low.
The first resistance is near $1.050. There is also a connecting bearish trend line forming with resistance at $1.040 on the hourly chart of the ADA/USD pair. The next key resistance might be $1.0880. If there is a close above the $1.0880 resistance, the price could start a strong rally.
In the stated case, the price could rise toward the $1.120 region. Any more gains might call for a move toward $1.1520 in the near term.
Another Decline in ADA?
If Cardano’s price fails to climb above the $1.050 resistance level, it could start another decline. Immediate support on the downside is near the $0.980 level.
The next major support is near the $0.9650 level. A downside break below the $0.9650 level could open the doors for a test of $0.9200. The next major support is near the $0.880 level where the bulls might emerge.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.980 and $0.9650.
Major Resistance Levels – $1.0250 and $1.0500.
Credit: Source link
