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HomeAltcoin NewsCardano (ADA) Price Analysis: Support Turned Resistance at $1.20

Cardano (ADA) Price Analysis: Support Turned Resistance at $1.20

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  • ADA price topped near the $1.450 level and started a fresh decline against the US Dollar.
  • The price is now trading below the $1.200 support and the 55 simple moving average (4-hours).
  • There is a key bullish trend line forming with support near $1.070 on the 4-hours chart (data feed via Bitfinex).
  • The price remains at a risk of more losses below the $1.070 and $1.050 support levels.

Cardano price is showing bearish signs below $1.200 against the US Dollar, similar to bitcoin. ADA price could correct higher, but the $1.200 zone is likely to prevent gains.

Cardano Price Analysis

Cardano price followed a bearish path from well above the $1.400 level against the US Dollar. The ADA/USD pair broke many important supports near $1.300 and $1.200 to move into a bearish zone.

The pair even settled below the $1.2000 support and settled well below the 55 simple moving average (4-hours). A low is formed near $1.070 and the price is now consolidating losses. It cleared the 23.6% Fib retracement level of the downward move from the $1.345 swing high to $1.070 low.

An initial resistance is near the $1.165 level. The first major resistance is near the $1.180 level and the 55 simple moving average (4-hours). The main resistance is now forming near the $1.200 level.

It is close to the 50% Fib retracement level of the downward move from the $1.345 swing high to $1.070 low. A clear break above the $1.200 resistance and the 55 simple moving average (4-hours) is must to start a fresh increase. In the stated case, the price might rise towards the $1.250 and $1.265 levels in the near term.

Conversely, the price might fail to climb above $1.200 and continue to move lower. On the downside, the $1.070 level is a decent support. There is also a key bullish trend line forming with support near $1.070 on the 4-hours chart. The next main support is near the $0.9800 level, where the bulls might appear.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is clearly facing a strong resistance near $1.200 and the 55 simple moving average (4-hours). Overall, the price remains at a risk of more losses below the $1.070 and $1.050 support levels.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is showing negative signs in the bearish zone.

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

Key Support Levels – $1.070 and $0.980.

Key Resistance Levels – $1.200 and $1.265.

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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