HomeAltcoin NewsCardano (ADA) Price Analysis: Bulls Facing Uphill Task

Cardano (ADA) Price Analysis: Bulls Facing Uphill Task

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  • ADA price is struggling to clear the $2.18 and $2.20 resistance levels against the US Dollar.
  • The price is now trading below $2.20 and the 55 simple moving average (4-hours).
  • There is a major bearish trend line forming with resistance near $2.21 on the 4-hours chart (data feed via Bitfinex).
  • The price might start a fresh increase unless there is a break below $2.05.

Cardano price is struggling below the $2.20 resistance against the US Dollar, unlike bitcoin. ADA price must clear $2.24 to start a fresh increase.

Cardano Price Analysis

After a close above $2.20, cardano price attempted a break above the $2.24 resistance zone against the US Dollar. The ADA/USD pair failed to gain momentum and started a fresh decline below $2.20.

There was a break below the $2.15 level and the 55 simple moving average (4-hours). The price even traded below the $2.10 level. A low is formed near $2.09 and it is now consolidating losses.

An initial resistance on the upside is near the $2.17 level. It is near the 50% Fib retracement level of the recent decline from the $2.25 swing high to $2.09 low. The first key resistance is near the $2.20 level. There is also a major bearish trend line forming with resistance near $2.21 on the 4-hours chart.

The trend line is close to the 76.4% Fib retracement level of the recent decline from the $2.25 swing high to $2.09 low. A clear break above the trend line might open the doors for a fresh move towards $2.24.

If there is an upside break above the $2.24 zone, the price could rally above $2.32. The next major resistance could be near the $2.50 level. On the downside, an immediate support is near the $2.09 level. The first major support is near $2.05. Any more losses might lead the price towards the $2.00 level, below which the bears could gain strength in the near term.

Cardano Price
Cardano Price

The chart indicates that ADA price is now trading below $2.15 and the 55 simple moving average (4-hours). Overall, the price might start a fresh increase unless there is a break below $2.05.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is moving in the bearish zone.

4 hours RSI – The RSI for ADA/USD is correcting higher towards the 50 level.

Key Support Levels – $2.07 and $2.05.

Key Resistance Levels – $2.20 and $2.24.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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