Cardano (ADA) Eyes Resistance Break—Failure Could Spark Fresh Losses
Cardano price started a recovery wave above the $0.5680 zone. ADA is consolidating near $0.60 and remains at risk of more losses.
- ADA price started a recovery wave from the $0.510 zone.
- The price is trading below $0.620 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at $0.60 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could start another increase if it clears the $0.60 resistance zone.
Cardano Price Faces Resistance
In the past few days, Cardano saw a fresh decline below the $0.60 level, like Bitcoin and Ethereum. ADA declined below the $0.550 and $0.540 support levels.
A low was formed at $0.5106 and the price started a recovery wave. There was a move above the $0.540 and $0.5550 levels. The price cleared the 50% Fib retracement level of the recent decline from the $0.6712 swing high to the $0.5106 low.
Cardano price is now trading below $0.620 and the 100-hourly simple moving average. On the upside, the price might face resistance near the $0.60 zone. There is also a connecting bearish trend line forming with resistance at $0.60 on the hourly chart of the ADA/USD pair.
The first resistance is near $0.610 or the 61.8% Fib retracement level of the recent decline from the $0.6712 swing high to the $0.5106 low. The next key resistance might be $0.6320.
If there is a close above the $0.6320 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.680 region. Any more gains might call for a move toward $0.70 in the near term.
Another Drop in ADA?
If Cardano’s price fails to climb above the $0.60 resistance level, it could start another decline. Immediate support on the downside is near the $0.5680 level.
The next major support is near the $0.5550 level. A downside break below the $0.5550 level could open the doors for a test of $0.5320. The next major support is near the $0.50 level where the bulls might 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 above the 50 level.
Major Support Levels – $0.5680 and $0.5550.
Major Resistance Levels – $0.6000 and $0.6100.
