Cardano (ADA) Slips: A Healthy Correction or Bulls Losing Grip?

Cardano (ADA) Slips: A Healthy Correction or Bulls Losing Grip?

Table of Contents

Cardano price started a new decline below the $1,050 area. ADA is strengthening and may face difficulty in starting a new increase above the $1.0250 level.

  • ADA price started a new decline from the $1,150 area.
  • The price is trading below the $1.0550 level and the 100 hourly simple moving average.
  • There is a solid bearish trend line forming with resistance at $1,040 on the hourly chart of the ADA/USD pair (data source from Kraken).
  • The pair could start another increase if it crosses the $1,050 resistance area.

Cardano price is facing hurdles

After struggling to stay above the $1,150 level, Cardano began a new reverse decline Bitcoin and Ethereum. ADA fell below the $1.050 and $1.0350 support levels.

It even rose to less than $1.00. The bottom was formed at $0.9615 and the price is now trying to recover. There was a move above the $0.990 level. The price crossed the 23.6% Fibonacci retracement level of the downward move from the high of $1.088 to the low of $0.9615.

Cardano price is now trading below the $1,050 level and the 100-hourly simple moving average. On the upside, the price may face resistance near the $1.0250 area. It is close to the 50% Fibonacci retracement level of the downward move from the $1.088 swing high to the $0.9615 swing low.

The first resistance is located near $1,050. There is also a solid downtrend line forming with resistance at $1,040 on the hourly chart of the ADA/USD pair. The next major resistance could be $1.0880. If there is a close above the $1.0880 resistance level, the price could start a strong rally.

In the mentioned case, the price may rise towards the $1,120 area. Any further gains may require a move towards $1.1520 in the near term.

Another rollback in the ADA?

If Cardano price fails to rise above the $1,050 resistance level, it may start another decline. Immediate support on the downside is near the $0.980 level.

The next major support is near the $0.9650 level. A downside break below $0.9650 could open the doors to a test of $0.9200. The next major support is near the $0.880 level where the bulls may 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.

Key support levels – $0.980 and $0.9650.

Key resistance levels – $1.0250 and $1.0500.

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