Cardano price started a new decline below the $1,050 zone. ADA is consolidating and could struggle to start a new increase above the $1.0250 level.
- The ADA price started a new decline from the $1,150 zone.
- The price is trading below $1.0550 and the 100-hourly moving average.
- A connecting bearish trendline is forming with resistance at $1,040 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could rise again if it breaks the $1,050 resistance zone.
Cardano Price faces hurdles
After struggling to stay above the USD 1,150 level, Cardano started a new decline, unlike Bitcoin and Ethereum. ADA fell below the USD 1.050 and USD 1.0350 support levels.
It even peaked below $1.00. A low was formed at $0.9615 and the price is now trying to recover. There was a move above the USD 0.990 level. The price has crossed the 23.6% Fib retracement level of the downward move from the $1.088 swing high to the $0.9615 low.
Cardano price is now trading below $1,050 and the 100-hour moving average. On the upside, the price could encounter resistance near the $1.0250 zone. It is close to the 50% Fib retracement level of the downward move from the $1.088 swing high to the $0.9615 low.
The first resistance is near $1,050. A connecting bearish trendline is also forming with resistance at $1,040 on the hourly chart of the ADA/USD pair. The next major resistance could be at $1.0880. If there is a close above the USD 1.0880 resistance, the price could start a strong rally.
In the said case, the price could rise towards the $1,120 region. Any further gains could require a move towards $1.1520 in the near term.
Another drop in ADA?
If Cardano price fails to rise above the USD 1,050 resistance level, it could trigger another decline. The immediate downside support is near the USD 0.980 level.
The next major support is near the $0.9650 level. A downside break below the USD 0.9650 level could open the doors for a test of USD 0.9200. The next major support is near the $0.880 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 – USD 0.980 and USD 0.9650.
Major resistance levels – $1.0250 and $1.0500.