Cardano price started a downward correction from the $1.1780 zone. ADA is consolidating and facing hurdles around the USD 1,180 and USD 1,200 levels.
- ADA price started a decent rise against the $0.910 support zone.
- The price is trading above $1,050 and the 100-hour moving average.
- A major bearish trendline is forming with resistance at $1,160 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could start rising again if it breaks the $1,180 resistance zone.
Cardano Price looks upside down
After forming a base above the $1.00 level, Cardano started a new rise, just like Bitcoin and Ethereum. ADA was able to climb above the USD 1,050 and USD 1,120 resistance levels.
However, the bears were active below the USD 1.20 level. A high was reached at $1.1781 and the price is now consolidating gains. There was a small decline below the USD 1,120 level. The price fell below the 23.6% Fib retracement level of the upward move from the $0.910 swing low to the $1.1781 high.
Cardano price is now trading above $1,050 and the 100-hour moving average. On the upside, the price could encounter resistance near the $1,150 zone. There is also a major bearish trendline forming with resistance at $1,160 on the hourly chart of the ADA/USD pair.
The first resistance is near $1,180. The next major resistance could be at $1.20. If there is a close above the resistance at $1.2, the price could start a strong rally. In the said case, the price could rise towards the $1.2280 region. Further gains could require a move to $1,250.
Another drop in ADA?
If Cardano price fails to rise above the USD 1,180 resistance level, it could trigger another decline. The immediate downside support is near the $1.10750 level.
The next major support is near the $1.050 level or the 50% Fib retracement level of the upward move from the $0.910 swing low to the $1.1781 high. A downside break below the USD 1.050 level could open the doors for a test of USD 1.00. The next major support is near the $0.920 level, where the bulls could emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining strength in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – USD 1,070 and USD 1,050.
Major resistance levels – $1,160 and $1,180.