Cardano price extended gains above the USD 0.4350 resistance. ADA is now consolidating gains and could correct lower towards the $0.4250 support.
- ADA price climbed higher and tested the $0.4565 zone.
- The price is trading above $0.4320 and the 100-hourly moving average.
- There was a break below a key bullish trendline with support at $0.4400 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could correct lower and test the $0.4250 support zone.
Cardano Price is showing signs of short-term weakness
In recent days, Cardano has been gaining pace for a move above the $0.40 resistance zone. ADA climbed above the USD 0.420 and USD 0.4250 resistance levels, like Bitcoin and Ethereum.
It even managed to overcome the USD 0.450 resistance and tested USD 0.4650. A high was formed at $0.4680 and the price is now correcting gains. There was a move below the USD 0.4450 and USD 0.4400 support levels. There was a break below a key bullish trendline with support at $0.4400 on the hourly chart of the ADA/USD pair.
A low was formed at $0.4359 and the price remains within a range. The ADA price is now trading above $0.4320 and the 100-hourly moving average. If another upside move comes, the price could face resistance near the $0.4465 zone and the 50% Fib retracement level of the downside move from the $0.4568 swing high to the $0.4359 low.
The first resistance is near USD 0.450. The next major resistance could be at $0.4650. If there is a close above the resistance at $0.4650, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.4880 region. Further gains could require a move towards $0.500.
Disadvantage correction in ADA?
If Cardano price fails to rise above the USD 0.4465 resistance level, it could trigger a downside correction. The immediate downside support is near the $0.4360 level.
The next major support is near the $0.4250 level. A downside break below the USD 0.4250 level could open the doors for a test of USD 0.4050. The next major support is near the $0.400 level.
Technical indicators
Hourly MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – $0.4360 and $0.4250.
Major resistance levels – $0.4465 and $0.4650.