Cardano (ADA) is correcting gains from the $0.80 resistance zone. ADA could start a fresh increase if it stays above the $0.6880 support zone.
- ADA price is slowly moving lower from the $0.80 zone.
- The price is trading below $0.720 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support at $0.6880 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 $0.680 support.
Cardano Price Reaches Key Support
After forming a base above the $0.580 level, Cardano started a fresh increase. ADA price was able to climb above the $0.620 and $0.680 resistance levels to move into a positive zone, like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.700 resistance zone. However, the bears were active near the $0.80 resistance zone. A high was formed near $0.8097 and the price started a downside correction. There was a move below the $0.750 level.
The price declined below the 23.6% Fib retracement level of the upward wave from the $0.5754 swing low to the $0.8097 high. ADA price is now trading below $0.7250 and the 100 simple moving average (4 hours).
There is also a key bullish trend line forming with support at $0.6880 on the 4-hour chart of the ADA/USD pair. The trend line is near the 50% Fib retracement level of the upward wave from the $0.5754 swing low to the $0.8097 high.
Source: ADAUSD on TradingView.com
The bulls might remain active near the $0.680 support. On the upside, immediate resistance is near the $0.7220 zone. The first resistance is near $0.740. The next key resistance might be $0.800. If there is a close above the $0.800 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.8250 region. Any more gains might call for a move toward $0.850.
More Losses in ADA?
If Cardano’s price fails to climb above the $0.7220 resistance level, it could continue to move down. Immediate support on the downside is near the $0.6880 level.
The next major support is near the $0.680 level. A downside break below the $0.680 level could open the doors for a test of $0.6350. The next major support is near the $0.6120 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.6880, $0.6800, and $0.6350.
Major Resistance Levels – $0.7220, $0.7400, and $0.8000.
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.
