- ADA price started a downside correction from the $3.10 zone against the US Dollar.
- The price is now trading below $2.80 and the 55 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $2.80 on the 4-hours chart (data feed via Bitfinex).
- The price could start another strong increase as long as it is above the $2.50 support zone.
Cardano price is correcting gains below $2.80 against the US Dollar, similar to bitcoin. ADA price must stay above $2.50 to continue higher in the near term.
Cardano Price Analysis
After a close above the $2.50 level, cardano price started another increase against the US Dollar. The ADA/USD pair broke the $2.80 resistance to move further into a positive zone.
The price even climbed above the $3.00 level and settled nicely above the 55 simple moving average (4-hours). Finally, there was a spike above $3.05, but the price failed to clear $3.10. A high was formed near $3.09 and the price started a downside correction.
There was a break below the $2.90 and $2.80 levels. However, the bulls are now protecting the $2.50 support zone. A low is formed near $2.53 and the price is now consolidating. ADA is now trading below $2.80 and the 55 simple moving average (4-hours).
An immediate resistance is near the $2.67 level. It is near the 23.6% Fib retracement level of the recent decline from the $3.09 swing high to $2.53 swing low. The next major resistance is forming near the $2.80 level. There is also a key bearish trend line forming with resistance near $2.80 on the 4-hours chart.
The trend line is close to the 50% Fib retracement level of the recent decline from the $3.09 swing high to $2.53 swing low.
If there is an upside break above the $2.80 zone, the price could rally above $3.00. An immediate support is near the $2.55 level. The main support sits near the $2.50 level. Any more losses might call for a sharp decline to $2.20.
The chart indicates that ADA price is now trading below $2.80 and the 55 simple moving average (4-hours). Overall, the price could start another strong increase as long as it is above the $2.50 support zone.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is still in the bearish zone.
4 hours RSI – The RSI for ADA/USD is now well below the 50 level.
Key Support Levels – $2.55 and $2.50.
Key Resistance Levels – $2.67 and $2.80.
