Cardano (ADA) is correcting gains from the $0.80 resistance zone. ADA may start a further increase if it remains above the $0.6880 support zone.
- ADA price is slowly falling from the $0.80 zone.
- The price is trading below $0.720 and the 100 simple moving average (4-hours).
- There is a bullish trend line forming with support at $0.6880 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair may attempt a further rise if bulls remain active above the $0.680 support.
Cardano Price Reaches Key Support
After forming a base above the $0.580 level, Cardano began a new increase. ADA price managed to rise above the $0.620 and $0.680 resistance levels to enter a positive zone such as Bitcoin It is Ethereum.
Bulls pushed the pair above the $0.700 resistance zone. However, bears were active near the $0.80 resistance zone. A rally was formed near $0.8097 and the price began a downward correction. There was a move below the $0.750 level.
The price fell below the 23.6% Fib retracement level of the rising wave from $0.5754 swing low to $0.8097 high. ADA price is now trading below $0.7250 and the 100 simple moving average (4-hours).
There is also a bullish trend line forming with support at $0.6880 on the ADA/USD 4-hour chart. The trend line is near the 50% Fibonacci retracement level of the rising wave from the $0.5754 swing low to $0.8097 high.
Source: ADAUSD on TradingView.com
Bulls may remain active near the $0.680 support. On the upside, immediate resistance is near the $0.7220 zone. The first resistance is near $0.740. The next key resistance could be at $0.800. If there is a close above the $0.800 resistance, the price could begin a strong rally. In the stated case, the price could rise to the region of $0.8250. Any further gains may require a move towards $0.850.
More Losses in ADA?
If Cardano price fails to rise above the $0.7220 resistance level, it could continue falling. Immediate downside support is near the $0.6880 level.
The next major support is near the $0.680 level. A break below the $0.680 level could open the door for a test of $0.6350. The next major support is near the $0.6120 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing strength in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.6880, $0.6800 and $0.6350.
Main resistance levels – $0.7220, $0.7400 and $0.8000.
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