Cardano (ADA) Uptrend Faces Hurdles: Will Bulls Break the Barrier?
Cardano price started a downward correction from the $1.1780 area. ADA is consolidating and faces obstacles near the $1.180 and $1.200 levels.
- ADA price started rising sharply from the $0.910 support area.
- The price is trading above $1.050 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance at $1.160 on the hourly chart of the ADA/USD pair (data source from Kraken).
- If the $1.180 resistance zone is exceeded, the pair may start rising again.
Cardano Price Outlook: Upside Breakout
After forming a base above $1.00, Cardano started a fresh rise, e.g. Bitcoin and Ethereum. ADA was able to break above the $1.050 and $1.120 resistance levels.
However, bears are active below $1.20. A high was formed at $1.1781 and the price is now consolidating gains. It fell slightly below $1.120. The price fell below the 23.6% Fib retracement level of the upward move from the $0.910 swing low to $1.1781 high.
Cardano price is currently trading above $1.050 and the 100 hourly simple moving average. On the upside, the price may face resistance near the $1.150 area. There is also a major bearish trend line forming with resistance at $1.160 on the hourly chart of the ADA/USD pair.
The first level of resistance is near $1.180. The next key resistance level is likely to be $1.20. If the price closes above the $1.2 resistance, the price may start a strong rebound. In the above scenario, the price may rise towards the $1.2280 area. Any further gains could lead the price to $1.250.
ADA down again?
If Cardano price fails to break above the $1.180 resistance, another decline may begin. Immediate support on the downside is located near $1.10750.
The next major support is near $1.050, the 50% Fib retracement level of the upward move from the $0.910 swing low to $1.1781 high. A break below the $1.050 level could open the door to a test of $1.00. The next major support is near $0.920, 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 – $1.070 and $1.050.
Major resistance levels – $1.160 and $1.180.
