Cardano (ADA) is trying to stage a recovery wave from the $0.4650 zone. ADA could start a new rally if there is a close above the USD 0.550 resistance.
- ADA price is moving higher from the $0.4650 zone.
- The price is trading below $0.570 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $0.545 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair could accelerate higher if there is a clear move above USD 0.545 and USD 0.550.
Cardano Price Tries New Rise
After a strong rally, Cardano faced sellers near the $0.675 zone. ADA started a fresh decline below the USD 0.620 and USD 0.600 support levels, unlike Bitcoin and Ethereum.
There was a decline below the $0.550 support and the 100 simple moving average (4 hours). Finally, the price found support near the $0.4650 zone. The price is now trying to make a fresh rise above the USD 0.500 resistance zone. The price tested the 23.3% Fib retracement level of the downward move from the $0.6768 swing high to the $0.4650 low.
ADA is now trading below $0.570 and the 100 simple moving average (4 hours). There is also a major bearish trendline forming with resistance near $0.545 on the 4-hour chart of the ADA/USD pair.
On the upside, immediate resistance is near the $0.532 zone. The first resistance is near USD 0.545 and USD 0.550. The next major resistance could be $0.570 or the 50% Fib retracement level of the downward move from the $0.6768 swing high to the $0.4650 low.
Source: ADAUSD on TradingView.com
If there is a close above the USD 0.570 resistance, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.620 region. Further gains could require a move towards $0.650.
Another drop in ADA?
If Cardano price fails to rise above the USD 0.545 resistance level, a new decline could begin. The immediate downside support is near the $0.500 level.
The next major support is near the $0.465 level. A downside break below the USD 0.465 level could open the doors for a test of USD 0.432. The next major support is near the $0.420 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – USD 0.500, USD 0.465 and USD 0.432.
Major resistance levels – $0.532, $0.545 and $0.570.
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