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HomeAltcoin NewsCardano (ADA) Price Analysis: Dips Likely To Be Limited Near $0.195

Cardano (ADA) Price Analysis: Dips Likely To Be Limited Near $0.195

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  • ADA price rallied above the $0.2000 and $0.2200 resistance levels against the US Dollar.
  • The price is now correcting lower below $0.2100, but it is above the 55 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $0.1900 on the 4-hours chart (data feed via Kraken).
  • The price is likely to remain well supported on the downside near the $0.1900 zone.

Cardano price is slowly moving lower from well above $0.2200 against the US Dollar, similar to bitcoin. ADA price must stay above $0.1900 to start a fresh increase in the near term.

Cardano Price Analysis

Cardano price started a strong surge after it settled above the $0.1700 resistance against the US Dollar. The ADA/USD pair broke the $0.2000 resistance level and settled above the 55 simple moving average (4-hours).

It opened the doors for more upsides above $0.2100 and $0.2200. The price traded as high as $0.2423 before starting a downside correction. There was a break below the $0.2300 and $0.2200 levels. The price broke the 23.6% Fib retracement level of the recent rally from the $0.1501 swing low to $0.2423 high.

There was a strong spike towards the $0.1950 support level. The price even tested the 50% Fib retracement level of the recent rally from the $0.1501 swing low to $0.2423 high. More importantly, there is a major bullish trend line forming with support near $0.1900 on the 4-hours chart.

On the upside, the price is facing hurdles near the $0.2200 and $0.2220 levels. A close above the $0.2220 level may possibly open the doors for a larger increase. In the stated case, the price is likely to continue higher towards the $0.2400 and $0.2500 levels.

Conversely, the price could correct again and test $0.1950. The next major support on the downside is near the $0.1850 level and the 55 simple moving average (4-hours), where the bulls are likely to appear.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is correcting lower below $0.2100, but it is above the 55 simple moving average (4-hours). Overall, the price is likely to start a fresh increase as long as it is above the $0.1850 level.

Technical Indicators

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

4 hours RSI – The RSI for ADA/USD is currently declining towards the 55 level.

Key Support Levels – $0.1950 and $0.1850.

Key Resistance Levels – $0.2220 and $0.2400.

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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