Cardano’s price is correcting higher from the $ 0.0880 support. Bitcoin price is surging, but ADA must climb above $ 0.0980 and $ 0.1000 to start a strong rally.
- ADA extended its decline towards the $ 0.0880 support before correcting higher against the US dollar.
- The price is now testing the $ 0.0950 resistance and it is well below the 100 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $ 0.0960 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
- The pair is likely to start a fresh rally if there is a clear break above $ 0.0960 and $ 0.1000.
Cardano (ADA) is Facing Significant Resistance
In the past few days, cardano’s price followed a bearish path from well above $ 0.1050. ADA price even settled below the $ 0.1000 support level and the 100 simple moving average (4-hours).
The decline gained pace below the $ 0.0950 support level before the bulls appeared near the $ 0.0880 level. A new monthly low is formed near $ 0.0882 and the price is currently correcting higher. It recovered above the $ 0.0920 and $ 0.0935 levels.
There was a clear break above the 50% Fib retracement level of the downward move from the $ 0.0999 high to $ 0.0882 low. The price is now facing a strong resistance near the $ 0.0955 and $ 0.0960 levels.
Source: ADAUSD on TradingView.com
More importantly, there is a crucial bearish trend line forming with resistance near $ 0.0960 on the 4-hours chart of the ADA/USD pair. The trend line is close to the 61.8% Fib retracement level of the downward move from the $ 0.0999 high to $ 0.0882 low.
A clear break above the trend line resistance and $ 0.0960 could push the price towards the next key resistance at $ 0.1000 or the 100 simple moving average (4-hours). To continue higher, the price must gain strength above the $ 0.1000 resistance level. The next major resistance is at $ 0.1072, followed by $ 0.1120.
If cardano’s price fails to clear the $ 0.0960 and $ 0.1000 resistance levels, there is a risk of a fresh decline. An initial support is near the $ 0.0920 level.
The main support is now forming near the $ 0.0900 and $ 0.0880 levels. A clear break below the $ 0.0880 support level may possibly spark a sharp decline towards $ 0.0820 or even $ 0.0800.
4-hours MACD – The MACD for ADA/USD is struggling to gain pace in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently just above the 50 level.
Major Support Levels – $ 0.0920, $ 0.0900 and $ 0.0880.
Major Resistance Levels – $ 0.0955, $ 0.0960 and $ 0.1000.