Cardano’s price is correcting higher from the $0.0880 support. Bitcoin price is surging, but ADA must climb above $0.0980 and $0.1000 to start a strong rally.
- ADA extended its decline towards the $0.0880 support before correcting higher against the US dollar.
- The price is now testing the $0.0950 resistance and it is well below the 100 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $0.0960 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
- The pair is likely to start a fresh rally if there is a clear break above $0.0960 and $0.1000.
Cardano (ADA) is Facing Significant Resistance
In the past few days, cardano’s price followed a bearish path from well above $0.1050. ADA price even settled below the $0.1000 support level and the 100 simple moving average (4-hours).
The decline gained pace below the $0.0950 support level before the bulls appeared near the $0.0880 level. A new monthly low is formed near $0.0882 and the price is currently correcting higher. It recovered above the $0.0920 and $0.0935 levels.
There was a clear break above the 50% Fib retracement level of the downward move from the $0.0999 high to $0.0882 low. The price is now facing a strong resistance near the $0.0955 and $0.0960 levels.
Source: ADAUSD on TradingView.com
More importantly, there is a crucial bearish trend line forming with resistance near $0.0960 on the 4-hours chart of the ADA/USD pair. The trend line is close to the 61.8% Fib retracement level of the downward move from the $0.0999 high to $0.0882 low.
A clear break above the trend line resistance and $0.0960 could push the price towards the next key resistance at $0.1000 or the 100 simple moving average (4-hours). To continue higher, the price must gain strength above the $0.1000 resistance level. The next major resistance is at $0.1072, followed by $0.1120.
Fresh Decline?
If cardano’s price fails to clear the $0.0960 and $0.1000 resistance levels, there is a risk of a fresh decline. An initial support is near the $0.0920 level.
The main support is now forming near the $0.0900 and $0.0880 levels. A clear break below the $0.0880 support level may possibly spark a sharp decline towards $0.0820 or even $0.0800.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is struggling to gain pace in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently just above the 50 level.
Major Support Levels – $0.0920, $0.0900 and $0.0880.
Major Resistance Levels – $0.0955, $0.0960 and $0.1000.
