- ADA price failed to settle above $1.280 and corrected lower below $1.220 against the US Dollar.
- The price is now above the $1.160 support and the 55 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $1.220 on the 4-hours chart (data feed via Bitfinex).
- The price is likely to start a fresh rally once there is a clear break above the $1.220 resistance.
Cardano price is trading above a major support at $1.160 against the US Dollar, while bitcoin is rising. ADA price must settle above $1.220 for a strong upward move.
Cardano Price Analysis
Earlier, cardano price surged above the $1.200 and $1.2200 resistance levels against the US Dollar. The ADA/USD pair even spiked above the $1.250 level, but it failed to continue higher above the $1.286 level.
A high was formed near $1.286 and the price corrected lower. It traded below the $1.255 and $1.250 support levels. There was also a break below the 23.6% Fib retracement level of the upward move from the $1.037 swing low to $1.286 high.
The price even spiked below the $1.185 support and the 55 simple moving average (4-hours). However, the bulls were active above the $1.160 level. They also protected the 50% Fib retracement level of the upward move from the $1.037 swing low to $1.286 high.
The price is now trading nicely above the $1.160 support and the 55 simple moving average (4-hours). An immediate resistance on the upside is near the $1.220 level.
There is also a major bearish trend line forming with resistance near $1.220 on the 4-hours chart. A clear break above the trend line could open the doors for more gains above the $1.250 level. The next major resistance is near $1.285, above which the price might even test $1.300.
Conversely, the price might fail to climb above $1.220 and continue to move lower. A downside break below $1.160 could push the price further lower towards the $1.098 support.
The chart indicates that ADA price is clearly facing a strong resistance near $1.220. Overall, the price is likely to start a fresh rally once there is a clear break above the $1.220 resistance.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is slowly gaining pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is now well above the 50 level.
Key Support Levels – $1.180 and $1.160.
Key Resistance Levels – $1.220 and $1.250.