Cardano price started a new decline below the $1.050 area. ADA is consolidating and may struggle to start fresh growth above the $1.0250 level.
- ADA price started a new decline from the $1.150 area.
- The price is trading below $1.0550 and the 100-hour simple moving average.
- There is a connecting bearish trend line forming with resistance at $1.040 on the hourly chart of the ADA/USD pair (data source from Kraken).
- If the pair clears the $1.050 resistance zone it could start another rise.
Cardano price is facing obstacles
After struggling to hold above the $1.150 level, Cardano started a fresh decline unlike Bitcoin and Ethereum. ADA fell below the $1.050 and $1.0350 supports.
It reached below $1.00. A low of $0.9615 was formed and the price is now trying to recover. There was a move above the $0.990 level. The price surpassed the 23.6% Fibonacci retracement level of the decline from high $1.088 to low $0.9615.
Cardano price is now trading below $1.050 and the 100-hour simple moving average. On the positive side, the price may face resistance near the $1.0250 area. It is near the 50% Fibonacci retracement level of the downside move from high $1.088 to low $0.9615.
The first resistance is near $1.050. There is also a connecting bearish trend line forming with resistance at $1.040 on the hourly charts of the ADA/USD pair. The next major resistance could be $1.0880. If there is a close above the $1.0880 resistance, the price could start a strong uptrend.
In the mentioned case, the price may move towards the $1.120 area. Any further gains may require a move towards $1.1520 in the near term.
Another decline in ADA?
If Cardano price fails to climb above the $1.050 resistance, it could start another decline. On the downside, immediate support is near $0.980 levels.
The next major support is near the $0.9650 level. A drop below the $0.9650 level could open the doors to a test of $0.9200. The next major support is near the $0.880 level where 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.
Key support levels – $0.980 and $0.9650.
Key resistance levels – $1.0250 and $1.0500.
