Cardano price started a fresh decline below the $0.720 zone. ADA is correcting some losses and might face resistance near the $0.7750 level.
- ADA price started a recovery wave from the $0.650 zone.
- The price is trading below $0.720 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at $0.7050 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could start another increase if it clears the $0.720 resistance zone.
Cardano Price Faces Hurdles
In the past few days, Cardano saw a bearish wave below the $0.7750 level, like Bitcoin and Ethereum. ADA declined below the $0.750 and $0.720 support levels.
Finally, it tested the $0.650 zone. A low was formed at $0.6495 and the price recently started a recovery wave. The price climbed above the $0.6950 and $0.70 level. The price even spiked above the 50% Fib retracement level of the downward move from the $0.8170 swing high to the $0.6495 low.
Cardano price is now trading below $0.720 and the 100-hourly simple moving average. There is also a connecting bearish trend line forming with resistance at $0.7050 on the hourly chart of the ADA/USD pair.
On the upside, the price might face resistance near the $0.7050 zone. The first resistance is near $0.7520 or the 61.8% Fib retracement level of the downward move from the $0.8170 swing high to the $0.6495 low. The next key resistance might be $0.7750.
If there is a close above the $0.7750 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.80 region. Any more gains might call for a move toward $0.850 in the near term.
Another Drop in ADA?
If Cardano’s price fails to climb above the $0.720 resistance level, it could start another decline. Immediate support on the downside is near the $0.6880 level.
The next major support is near the $0.650 level. A downside break below the $0.650 level could open the doors for a test of $0.6350. The next major support is near the $0.620 level where the bulls might emerge.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.6880 and $0.6500.
Major Resistance Levels – $0.7520 and $0.7750.
