Cardano (ADA) corrected gains and tested the $0.4520 support zone. ADA must remain above the $0.450 support to begin a new upward move.
- ADA price is struggling to gain bullish momentum above the $0.4750 zone.
- The price is trading below $0.460 and the 100 hourly simple moving average.
- There was a break above a downtrend line with resistance at $0.4570 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could gain bullish momentum if there is a close above $0.4620.
Support for Cardano price testing
In recent sessions, Cardano began a downward movement after failing to overcome the $0.4750 resistance. ADA fell below the $0.4620 support and tested the key support at $0.4520 as Bitcoin It is Ethereum.
A low was formed at $0.4516 and the price is now consolidating losses. There was a small wave of recovery above the $0.4550 zone. There was a break above a downtrend line with resistance at $0.4570 on the hourly chart of the ADA/USD pair. The pair tested the 23.6% Fib retracement level of the recent decline from the $0.4743 swing high to $0.4516 low.
Cardano is now trading below $0.4620 and the 100 hourly simple moving average. On the upside, immediate resistance is near the $0.4960 zone. The first resistance is near $0.4620 or the 50% Fibonacci retracement level of the recent decline from the $0.4743 swing high to $0.4516 low.
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The next key resistance could be $0.4750. If there is a close above the $0.4750 resistance, the price could begin a strong rally. In the stated case, the price could rise to the region of $0.50. Any further gains may require a move towards $0.5250.
More Losses in ADA?
If Cardano price fails to rise above the $0.4620 resistance level, it could continue falling. Immediate downside support is near the $0.4520 level.
The next major support is near the $0.4460 level. A break below the $0.4460 level could open the door for a test of $0.4320. The next major support is near the $0.420 level.
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.
Key support levels – $0.4520, $0.4460 and $0.4320.
Main resistance levels – $0.4620 and $0.4750.