Key Highlights
- ADA price declined further and broke the $0.0700 support level against the US Dollar (tethered).
- There is a major declining channel in place with resistance at $0.0700 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair is likely to break the $0.0620 support area and decline further in the near term.
Cardano price is moving lower against the US Dollar and Bitcoin. ADA/USD may continue to trade lower towards the $0.0600 support area if sellers remain in control.
Cardano Price Analysis
This week, there were heavy declines below the $0.0900 support in cardano price against the US Dollar. The ADA/USD pair declined and broke a couple of important support levels like $0.0800 and $0.0750. The decline was such that the price recently broke the $0.0700 support area and dived below $0.0650. A new monthly low was formed at $0.0628 and the price remains in a bearish zone.
An initial resistance on the upside is near $0.0670. It represents the 23.6% Fibonacci retracement level of the last slide from the $0.0810 high to $0.0628 low. More importantly, there is a major declining channel in place with resistance at $0.0700 on the hourly chart of the ADA/USD pair. Above the channel resistance, the next hurdle is near the $0.0720 level. The stated $0.0720 level is close to the 50% Fibonacci retracement level of the last slide from the $0.0810 high to $0.0628 low. Lastly, the 100 hourly simple moving average is positioned near the $0.0760 level to act as a hurdle for buyers.
The chart indicates that ADA price may correct a few points in the short term towards $0.0700. However, upsides are likely to be capped by the $0.0700 and $0.0720 resistance levels. On the downside, a break below the $0.0628 low could open the doors for a push to $0.0600.
Hourly MACD – The MACD for ADA/USD is currently in the bearish zone.
Hourly RSI – The RSI for ADA/USD is presently well below the 40 level.
Major Support Level – $0.0600
Major Resistance Level – $0.0720
