Cardano price started a recovery wave from the $0.6420 zone. ADA is now facing resistance near $0.6850 and might decline again.
- ADA price started a recovery wave from the $0.6420 zone.
- The price is trading below $0.680 and the 100-hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance at $0.650 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could start another increase if it clears the $0.6850 resistance zone.
Cardano Price Faces Resistance
In the past few days, Cardano saw a fresh decline from the $0.730 level, similar to Bitcoin and Ethereum. ADA declined below the $0.70 and $0.680 support levels.
A low was formed at $0.6426, and the price is once again moving higher. There was a move above the $0.6550 level, clearing the 23.6% Fib retracement level of the recent decline from the $0.7298 swing high to the $0.6426 low. Additionally, a break above a connecting bearish trend line with resistance at $0.650 has occurred on the hourly chart of the ADA/USD pair.
However, the selling pressure remains strong near the $0.6850 resistance and the 50% Fib retracement level of the recent decline from the $0.7298 swing high to the $0.6426 low. Currently, the Cardano price is trading below $0.680 and also below the 100-hourly simple moving average.
On the upside, the price might face initial resistance near the $0.680 zone, with the first significant resistance at $0.6850. A further key resistance could be found around $0.7090. If the price manages to close above the $0.7090 resistance, it may ignite a rally towards the $0.730 region. Continued upward momentum could push the price towards the $0.750 mark in the near term.
Another Drop in ADA?
If Cardano’s price fails to overcome the $0.6850 resistance level, a subsequent decline might occur. Immediate support is currently positioned near the $0.6630 level.
The next significant support area is around $0.6500. Should a downside break below this level occur, it could lead to a test of $0.6320. The next substantial support could emerge near the $0.6175 level where buying interest might reappear.
Technical Indicators
Hourly MACD – The MACD for the ADA/USD pair is losing momentum while still remaining in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently above the 50 threshold, indicating potential for further upward movement.
Major Support Levels – $0.6630 and $0.6500.
Major Resistance Levels – $0.6850 and $0.7090.
