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HomeAltcoin NewsCardano (ADA) Price Analysis: Dips Could Be Limited Below $1.15

Cardano (ADA) Price Analysis: Dips Could Be Limited Below $1.15

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  • ADA price started a fresh increase above the $1.250 resistance zone against the US Dollar.
  • The price is now trading close the $1.280 support and the 55 simple moving average (4-hours).
  • There was a break below a key bullish trend line with support at $1.350 on the 4-hours chart (data feed via Bitfinex).
  • The price could correct lower, but the bulls are likely to remain active near $1.170 and $1.150.

Cardano price is showing signs of a downside correction from $1.420 against the US Dollar, similar to bitcoin. ADA price could revisit $1.170 before starting a fresh increase.

Cardano Price Analysis

After forming a base above the $1.000 level, cardano price started a fresh increase against the US Dollar. The ADA/USD pair broke the $1.250 and $1.350 resistance levels.

It even spiked above the $1.400 level and settled above the 55 simple moving average (4-hours). However, the bulls failed to clear the $1.420 resistance zone. The recent high was formed near $1.419 before the price started a downside correction.

There was a break below the 23.6% Fib retracement level of the upward move from the $1.025 swing low to $1.419 high. There was also a break below a key bullish trend line with support at $1.350 on the 4-hours chart.

ADA is now trading close the $1.280 support and the 55 simple moving average (4-hours). An immediate support is near the $1.250 level. If there is a downside break below the $1.250 support, the price could continue to move down towards the $1.175 support.

An intermediate support could be $1.220. It is near the 50% Fib retracement level of the upward move from the $1.025 swing low to $1.419 high. The main support sits at $1.150, below which the price could dive towards the $1.000 level.

On the upside, an immediate resistance is seen near the $1.350 level. The main resistance is near the $1.420 level. A clear break above the $1.420 resistance zone could set the pace for a move towards the $1.50 level. The next stop for the bulls could be near the $1.650 level.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is clearly trading close the $1.280 support and the 55 simple moving average (4-hours). Overall, the price could correct lower, but the bulls are likely to remain active near $1.170 and $1.150.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is now losing pace in the bullish zone.

4 hours RSI – The RSI for ADA/USD is approaching the 50 level.

Key Support Levels – $1.250 and $1.115.

Key Resistance Levels – $1.350 and $1.420.

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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