Cardano price started a new decline below the $0.3565 zone. ADA is consolidating above USD 0.3420 and could attempt a recovery wave.
- ADA price started a downward move below the USD 0.3520 support level.
- The price is trading below $0.3500 and the 100-hour simple moving average.
- There was a break above a key bearish trendline with resistance at $0.3460 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could attempt a recovery wave if it breaks the $0.3520 resistance zone.
Cardano Price Consolidates Losses
After testing the USD 0.3700 resistance, Cardano struggled to hold higher. ADA formed a short-term top and started a new decline, unlike Bitcoin and Ethereum. There was a move below the USD 0.3550 and USD 0.3500 support levels.
The price even fell below $0.3450 before the bulls appeared. A low was formed at $0.3394 and the price is now consolidating losses. There was a small move above the USD 0.3420 level. The price has crossed the 23.6% Fib retracement level of the downward move from the $0.3705 swing high to the $0.3394 low.
Additionally, there was a break above a key bearish trendline with resistance at $0.3460 on the hourly chart of the ADA/USD pair. Cardano price is now trading below $0.350 and the 100-hour moving average.
On the upside, the price could encounter resistance near the $0.3515 zone. First resistance is near $0.3550 or the 50% Fib retracement level of the downward move from the $0.3705 swing high to the $0.3394 low. The next major resistance could be at $0.3620.
If there is a close above the resistance at $0.3620, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.3700 region. Further gains could require a move towards $0.3880.
More disadvantages in ADA?
If Cardano price fails to rise above the USD 0.350 resistance level, it could trigger a fresh decline. The immediate downside support is near the $0.3420 level.
The next major support is near the $0.3400 level. A downside break below the USD 0.3400 level could open the doors for a test of USD 0.3220. The next major support is near the $0.3100 level, where the bulls could emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – $0.3400 and $0.3220.
Major resistance levels – $0.3500 and $0.3550.
