Cardano price started a new decline below the $0.3550 zone. ADA is consolidating above $0.3400 and could attempt a recovery wave.
- ADA price started a downward movement below the $0.3500 support level.
- The price is trading below $0.3550 and the 100 hourly simple moving average.
- There was a break below a rising trend line with support at $0.3600 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair may attempt a recovery wave if it breaks above the $0.3585 resistance zone.
Cardano price consolidates losses
After testing the $0.3685 resistance, Cardano struggled to continue rising. ADA formed a short-term top and started a new decline, as Bitcoin and Ethereum. There was a move below the $0.3550 and $0.3500 support levels.
There was a break below a rising trend line with support at $0.3600 on the hourly chart of the ADA/USD pair. The price even fell below $0.3440 before the bulls appeared. A low was formed at $0.3420 and the price is now correcting losses. There was a small move above the $0.3480 level.
The price surpassed the 23.6% Fibonacci retracement level of the downward move from the $0.3685 high to $0.3420 low. Cardano price is now trading below $0.3550 and the 100 hourly simple moving average.
On the upside, the price may face resistance near the $0.3550 zone or the 50% Fibonacci retracement level of the downward movement from the $0.3685 swing high to $0.3420 low. The first resistance is near $0.3585. The next key resistance could be $0.3685.
If there is a close above the $0.3685 resistance, the price could begin a strong rally. In the stated case, the price could rise to the region of $0.3780. Any further gains may require a move towards $0.3950.
Another decline in ADA?
If Cardano price fails to rise above the $0.3550 resistance level, it could begin another decline. Immediate downside support is near the $0.3480 level.
The next major support is near the $0.3420 level. A break below the $0.3420 level could open the door for a test of $0.3250. The next major support is near the $0.3120 level where bulls could 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.
Key support levels – $0.3450 and $0.3420.
Main resistance levels – $0.3550 and $0.3685.