Cardano’s price fell sharply towards $ 0.1300 before correcting higher, similar to Bitcoin. ADA needs to eliminate the USD 0.1500 resistance and 100 SMA (H4) resistance to start a sharp surge.
- ADA stayed well bid above the $ 0.1300 level and corrected higher against the US dollar.
- The price is struggling to break the $ 0.1500 resistance and the simple moving average of 100 (4 hours).
- A large bearish trendline is forming on the 4-hour chart of the ADA / USD pair (data source from Bitfinex) with resistance near USD 0.1500.
- The pair is likely to start a new rally if there is a significant break above $ 0.1500 and $ 0.1540.
Cardano (ADA) shows positive signs
In the past few days, the price of cardano has corrected gains well above the $ 0.1500 level. The ADA price exceeded the support level of $ 0.1450 and was below the simple moving average of 100 (4 hours).
The decline accelerated below the $ 0.1400 level, but the bulls were able to hold the key support zone at $ 0.1300. A low is being formed near $ 0.1305 and the price is currently rising. There was a break above the $ 0.1350 and $ 0.1400 resistance levels.
ADA price even climbed above the 23.6% fib retracement level of the recent decline from the swing high of $ 0.1688 to the swing low of $ 0.1305. However, the price is struggling to remove the $ 0.1500 resistance and 100 (4 hours) simple moving average.
Source: ADAUSD on TradingView.com
A large bearish trendline is also forming on the 4-hour chart of the ADA / USD pair with resistance near $ 0.1500. The trendline is close to the 50% Fib retracement level of the recent decline from the swing high of $ 0.1688 to the swing low of $ 0.1305.
A successful break above the trendline and follow up above the simple moving average of 100 (4 hours) could open the doors for another rally. The next major resistance is near the $ 0.1780 level.
If the price of cardano does not remove the trendline resistance and $ 0.1500, it risks falling again. Initial support is near the $ 0.1400 level.
The main support is now forming near the $ 0.1300 level. Further losses could lead the price towards the breakdown zone and an important buy zone of $ 0.1200 in the short term.
4 Hour MACD – The MACD for ADA / USD is struggling to gain pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA / USD is just below the 50 level.
Major support levels – $ 0.1400, $ 0.1300, and $ 0.1200.
Main Resistance Levels – $ 0.1500, $ 0.1540, and $ 0.1700.