Cardano price started a fresh decline below the $0.3550 zone. ADA is consolidating above $0.3400 and could attempt a recovery wave.
- ADA price started a downward move below the $0.3500 support level.
- The price is below $0.3550 and the 100 hourly simple moving average.
- There was a break below a key bullish trendline with support at $0.3600 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could attempt a recovery wave if it clears the $0.3585 resistance zone.
Cardano price consolidates losses
After testing the $0.3685 resistance, Cardano struggled to continue higher. ADA formed a short-term high and started a fresh decline, like Bitcoin and Ethereum. There was a move below the $0.3550 and $0.3500 support levels.
There was a break below a key bullish trendline with support at $0.3600 on the hourly chart of the ADA/USD pair. The price even fell below $0.3440 before the bulls showed up. A low was formed at $0.3420 and the price is now correcting losses. There was a minor move above the $0.3480 level.
The price cleared the 23.6% Fib retracement level of the downward move from the swing high $0.3685 to low $0.3420. Cardano price is now trading below $0.3550 and the 100 hourly simple moving average.
On the other hand, the price could face resistance near the $0.3550 zone or the 50% Fib retracement level of the downward move from the swing high at $0.3685 to the low at $0.3420 -bumping dollars. The first resistance is near $0.3585. The next key resistance could be at $0.3685.
If the close is above the resistance at $0.3685, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.3780 region. Any further gains could necessitate a move towards $0.3950.
Another decline in ADA?
If Cardano price fails to climb above the $0.3550 resistance level, there could be another decline. The immediate downside support is near the $0.3480 level.
The next major support is near the $0.3420 level. A downward break below $0.3420 could open the door for a test of $0.3250. The next major support is near the $0.3120 level, where the 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 – $0.3450 and $0.3420.
Major resistance levels – $0.3550 and $0.3685.
