- ADA price started a downside correction after it failed to settle above $0.1350 against the US Dollar.
- The price is currently trading below the $0.1300 level and the 55 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $0.1298 on the 4-hours chart (data feed via Kraken).
- The price could dip a few points, but the $0.1150 and $0.1120 levels are likely to protect losses.
Cardano price is correcting gains after a strong rally against the US Dollar and bitcoin. ADA price might start a fresh increase if it clears the $0.1300 resistance zone.
Cardano Price Analysis
In the past few days, there was a strong increase in cardano price above the $0.1200 resistance against the US Dollar. The ADA/USD pair even climbed above the $0.1300 level and the 55 simple moving average (4-hours).
It even spiked above the $0.1350 level, but struggled to continue higher. As a result, a downside correction was initiated and the price declined below the $0.1300 level. The price even broke the 50% Fibonacci retracement level of the upward move from the $0.1100 low to $0.1358 swing high.
However, there is a strong support forming near the $0.1150 level. The 76.4% Fibonacci retracement level of the upward move from the $0.1100 low to $0.1358 swing high might also provide support.
Any further losses may perhaps push the price back towards the $0.1050 support level in the coming sessions. On the upside, the $0.1300 level is likely to act as a strong resistance. There is also a major bearish trend line forming with resistance near $0.1298 on the 4-hours chart.
A successful break above the trend line resistance and $0.1300 level could start a fresh increase in the near term. The next major resistance zone is near the $0.1350 level.
If the bulls remain in action above $0.1350, the price is likely to accelerate above this month’s high and it could even test the $0.1400 level.
The chart indicates that ADA price is clearly correcting gains below the $0.1300 level. It could dip a few points, but the $0.1150 and $0.1120 levels are likely to protect losses. On the upside, a clear break above $0.1300 resistance could start a fresh upward move.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is currently losing pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is now just below the 50 level.
Key Support Levels – $0.1180 and $0.1150.
Key Resistance Levels – $0.1300 and $0.1350.
