Cardano (ADA) is correcting gains from the $0.642 resistance zone. ADA could start a new rally if it stays above the $0.5550 support zone.
- ADA price is showing some bearish signs below the USD 0.600 level.
- The price is trading above USD 0.5550 and the 100 simple moving average (4 hours).
- There was a break below a key bullish trendline with support at $0.610 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair could attempt another rise if bulls remain active above the $0.570 support.
Cardano price drops in support
After forming a base above the USD 0.520 level, Cardano started a new increase. ADA price could climb above the USD 0.555 and USD 0.565 resistance levels to move into a positive zone like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.600 resistance zone. However, the bears were active near the USD 0.6420 resistance zone. A high was formed near $0.6419 and the price started a downward correction. There was a move below the USD 0.600 level.
There was also a break below a key bullish trendline with support at $0.610 on the 4-hour chart of the ADA/USD pair. The price fell below the 23.6% Fib retracement level of the upward move from the $0.4718 swing low to the $0.6419 high.
The ADA price is now trading below $0.600 and the 100 simple moving average (4 hours). The bulls could remain active near the $0.5700 support or the 50% Fib retracement level of the upward move from the $0.4718 swing low to the $0.6419 high.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.600 zone. The first resistance is near $0.612. The next major resistance could be at USD 0.620. If there is a close above the USD 0.620 resistance, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.642 region. Further gains could require a move towards $0.680.
More losses in ADA?
If Cardano price fails to rise above the USD 0.600 resistance level, it could continue to decline. The immediate downside support is near the USD 0.570 level.
The next major support is near the $0.5550 level. A downside break below the USD 0.5500 level could open the doors for a test of USD 0.5120. The next major support is near the $0.500 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – $0.570, $0.5550 and $0.5120.
Major resistance levels – $0.600, $0.6120 and $0.6420.
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