- ADA price remains in a strong downtrend below the $0.0722 resistance area against the US Dollar.
- The price tested the $0.0630 level and recently corrected higher towards $0.0700.
- There is a major bearish trend line in place with resistance at $0.0712 on the 4-hours chart (data feed via Kraken).
- The price could stage a strong recovery if there is a break above $0.0710 and $0.0722.
Cardano price declined steadily in the past few days against the US Dollar and bitcoin. ADA is currently correcting higher, but it won’t be easy for buyers to gain strength above $0.0722.
Cardano Price Analysis
In the past few weeks, there was a strong decline in cardano price from well above $0.0850 support against the US Dollar. The ADA/USD pair tumbled below the $0.0800 and $0.0700 support levels. There was even a close below the $0.0700 level and the 55 simple moving average (4-hours). Recently, the price traded below the $0.0655 support and formed a new swing low at $0.0630. It is currently correcting higher above $0.0655 and $0.0660.
The price cleared the 23.6% Fibonacci retracement level of the recent decline from the $0.0798 high to $0.0630 low. However, the $0.0700 level is acting as a strong resistance along with the 55 simple moving average (4-hours). More importantly, there is a major bearish trend line in place with resistance at $0.0712 on the 4-hours chart. The trend line coincides with the 50% Fibonacci retracement level of the recent decline from the $0.0798 high to $0.0630 low. Besides, the previous support area near $0.0722 could act as a significant resistance.
Therefore, the price is likely to struggle near $0.0700, $0.0710, $0.0720 and $0.0722. A successful close above the $0.0722 level and the 55 simple moving average (4-hours) could set the pace for more upsides. The next key resistance is near $0.0760, and the 76.4% Fibonacci retracement level of the recent decline from the $0.0798 high to $0.0630 low. In the mentioned case, the price is likely to climb higher towards $0.0800 or even $0.0820.
The chart indicates that ADA price is clearly trading below many hurdles near $0.0700 and $0.0720. If there is no clear break above $0.0720 and $0.0722, the price will most likely decline once again. On the downside, the $0.0650 and $0.0630 levels are decent supports. In the worst case scenario, the price might dive to a new swing low and later rebound sharply above $0.0700.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is slowly gaining momentum in the bullish zone.
4 hours RSI – The RSI for ADA/USD climbed above the 50 level, with a few positive signs.
Key Support Levels – $0.0650 and $0.0630.
Key Resistance Levels – $0.0710 and $0.0722.
