Cardano (ADA) Slips: A Healthy Correction or Bulls Losing Grip?
Cardano price started a fresh decline in the sub-$1.050 area. ADA is consolidating and may struggle to start a new leg higher above $1.0250.
- ADA price started a fresh decline from the $1.150 area.
- The price is trading below $1.0550 and the 100 hourly simple moving average.
- There is a bearish trend line forming with resistance at $1.040 on the hourly chart of the ADA/USD pair (data source: Kraken).
- If the $1.050 resistance zone is exceeded, the pair may start rising again.
Cardano Price Faces Hurdles
After struggling to stay above $1.150, Cardano started a fresh decline, which coincided with Bitcoin and Ethereum. ADA fell below the $1.050 and $1.0350 support levels.
It even surged below $1.00. A low was formed at $0.9615 and the price is currently trying to recover. The price rose above $0.990. The price cleared the 23.6% Fib retracement level of the downward move from the $1.088 swing high to $0.9615 low.
Cardano price is currently trading below $1.050 and the 100 hourly simple moving average. On the upside, the price may face resistance near the $1.0250 area. It is close to the 50% Fib retracement level of the downward move from the swing high of $1.088 to low of $0.9615.
The first level of 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 level is likely to be $1.0880. If the price closes above the $1.0880 resistance, the price may start a strong rebound.
In the above scenario, the price may rise towards the $1.120 area. If there is further upside, a move to $1.1520 is possible in the short term.
ADA down again?
If Cardano price fails to break above the $1.050 resistance, another decline could begin. Immediate support on the downside lies near $0.980.
The next major support is near $0.9650. A break below the $0.9650 level could open the door to a test of $0.9200. The next major support is near $0.880, where bulls may emerge.
Technical indicators
Hourly MACD – ADA/USD MACD is losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.
Major support levels – $0.980 and $0.9650.
The main resistance levels – $1.0250 and $1.0500.
