Cardano (ADA) Battles Resistance: A Fresh Surge In Sight?
Cardano price started a downward correction from the $1.325 area. ADA is consolidating and faces obstacles near the $1.20 and $1.240 levels.
- ADA price started to pull back after failing to stay above $1.30.
- The price is trading below $1.20 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance at $1.20 on the hourly chart of the ADA/USD pair (Data source: Kraken).
- If the $1.240 resistance zone is exceeded, the pair may start rising again.
Cardano price sees fresh rise
Cardano started a downward correction after struggling above $1.30. ADA underperforms Bitcoin and Ethereum It fell below the $1.20 level. The price even surged below $1.150 before bulls emerged.
A low of $1.1173 was formed before the price started a fresh increase. There was a break above the $1.140 and $1.1550 resistance levels. The price exceeded the 50% Fib retracement level of the decline from the swing high of $1.326 to low of $1.117.
However, bears are now active near the $1.25 area. They protect the 61.8% Fibonacci retracement level of the downside move from the $1.326 swing high to $1.117 low.
Cardano price is currently trading below $1.20 and the 100 hourly simple moving average. On the upside, the price may face resistance near the $1.20 area. There is also a key bearish trend line forming with resistance at $1.20 on the hourly chart of the ADA/USD pair.
The first level of resistance is near $1.2250. The next key resistance level is likely to be $1.2450. If the price closes above the $1.2450 resistance, the price may start a strong rebound. In the above scenario, the price may rise towards the $1.2780 area. Any further gains could lead the price to $1.320.
ADA down again?
If Cardano’s price fails to break above the $1.20 resistance, it may start another decline. Immediate support on the downside is near $1.150.
The next major support is near $1.120. A break below the $1.120 level could open the door to a test of $1.080. The next major support is near $1.0450, where bulls may emerge.
Technical indicators
Hourly MACD – ADA/USD MACD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.
Major support levels – $1.120 and $1.080.
Major resistance levels – $1.20 and $1.2450.
