Cardano (ADA) is correcting gains from the $0.642 resistance zone. ADA could start a fresh rally if it stays above the $0.5550 support zone.
- ADA price is showing a few bearish signs below the $0.600 level.
- The price is trading above $0.5550 and the 100 simple moving average (4 hours).
- There was a break below a key bullish trend line with support at $0.610 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could attempt a fresh increase if the bulls remain active above the $0.570 support.
Cardano Price Dips To Support
After forming a base above the $0.520 level, Cardano started a fresh increase. ADA price was able to climb above the $0.555 and $0.565 resistance levels to move into a positive zone, like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.600 resistance zone. However, the bears were active near the $0.6420 resistance zone. A high was formed near $0.6419 and the price started a downside correction. There was a move below the $0.600 level.
There was also a break below a key bullish trend line with support at $0.610 on the 4-hour chart of the ADA/USD pair. The price declined below the 23.6% Fib retracement level of the upward move from the $0.4718 swing low to the $0.6419 high.
ADA price is now trading below $0.600 and the 100 simple moving average (4 hours). The bulls might remain active near the $0.5700 support or the 50% Fib retracement level of the upward move from the $0.4718 swing low to the $0.6419 high.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.600 zone. The first resistance is near $0.612. The next key resistance might be $0.620. If there is a close above the $0.620 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.642 region. Any more gains might call for a move toward $0.680.
More Losses in ADA?
If Cardano’s price fails to climb above the $0.600 resistance level, it could continue to move down. Immediate support on the downside is near the $0.570 level.
The next major support is near the $0.5550 level. A downside break below the $0.5500 level could open the doors for a test of $0.5120. The next major support is near the $0.500 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.570, $0.5550, and $0.5120.
Major Resistance Levels – $0.600, $0.6120, and $0.6420.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
