Cardano price started a new decline below the $0.3550 zone. ADA is consolidating above USD 0.3400 and could attempt a recovery wave.
- ADA price started a downward move below the $0.3500 support level.
- The price is trading below $0.3550 and the 100-hour simple moving average.
- There was a break below a key bullish trendline with support at $0.3600 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could attempt a recovery wave if it breaks the $0.3585 resistance zone.
Cardano Price Consolidates Losses
After testing the resistance at $0.3685, Cardano struggled to hold higher. ADA formed a short-term top and started a new decline, as did Bitcoin and Ethereum. There was a move below the USD 0.3550 and USD 0.3500 support levels.
There was a break below a key bullish trendline with support at $0.3600 on the hourly chart of the ADA/USD pair. The price even fell below $0.3440 before the bulls appeared. A low was formed at $0.3420 and the price is now correcting losses. There was a small move above the USD 0.3480 level.
The price has crossed the 23.6% Fib retracement level of the downward move from the $0.3685 swing high to the $0.3420 low. Cardano price is now trading below $0.3550 and the 100-hourly moving average.
On the upside, the price could face resistance near the $0.3550 zone or the 50% Fib retracement level of the downward move from the $0.3685 swing high to the $0.3420 low. The first resistance is near $0.3585. The next major resistance could be $0.3685.
If there is a close above the resistance at $0.3685, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.3780 region. Further gains could require a move towards $0.3950.
Another drop in ADA?
If Cardano price fails to rise above the USD 0.3550 resistance level, it could trigger another decline. The immediate downside support is near the $0.3480 level.
The next major support is near the $0.3420 level. A downside break below the USD 0.3420 level could open the doors for a test of USD 0.3250. The next major support is near the $0.3120 level, where the bulls could 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 – $0.3450 and $0.3420.
Major resistance levels – $0.3550 and $0.3685.
