Cardano price started a downward correction from the $1,325 zone. ADA is consolidating and facing hurdles around the USD 1.20 and USD 1.240 levels.
- The ADA price started to fall back after it failed to stay above $1.30.
- The price is trading below $1.20 and the 100-hour moving average.
- A major bearish trendline is forming with resistance at $1.20 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could rise again if it breaks the $1,240 resistance zone.
Cardano Price Eyes Fresh increase
After struggling above $1.30, Cardano began a downward correction. ADA underperformed Bitcoin and Ethereum with a decline below the $1.20 level. The price even spiked below $1,150 before the bulls appeared.
A low was formed at $1.1173 before the price started to rise again. There was a move above the USD 1,140 and USD 1,1550 resistance levels. The price surpassed the 50% Fib retracement level of the downward move from the $1,326 swing high to the $1,117 low.
However, the bears are now active near the $1.25 zone. They protected the 61.8% Fib retracement level from the downward move from the $1,326 swing high to the $1,117 low.
Cardano price is now trading below $1.20 and the 100-hour moving average. On the upside, the price could encounter resistance near the $1.20 zone. There is also a major bearish trendline forming with resistance at $1.20 on the hourly chart of the ADA/USD pair.
The first resistance is near $1.2250. The next major resistance could be at $1.2450. If there is a close above the USD 1.2450 resistance, the price could start a strong rally. In the said case, the price could rise towards the $1.2780 region. Any further gains could require a move towards $1,320.
Another drop in ADA?
If Cardano price fails to rise above the USD 1.20 resistance level, it could trigger another decline. The immediate downside support is near the $1,150 level.
The next major support is near the $1,120 level. A downside break below the $1,120 level could open the doors for a test of $1,080. The next major support is near the $1.0450 level, where the bulls could emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining strength in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – USD 1,120 and USD 1,080.
Major resistance levels – $1.20 and $1.2450.
