Cardano (ADA) is correcting gains from the $0.642 resistance zone. ADA could start a fresh rally if it stays above the $0.5550 support zone.
- ADA price is showing a few bearish signs below the $0.600 level.
- The price is trading above $0.5550 and the 100 simple moving average (4 hours).
- There was a break below a key bullish trend line with support at $0.610 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could attempt a fresh increase if the bulls remain active above the $0.570 support.
Cardano Price Dips To Support
After forming a base above the $0.520 level, Cardano started a fresh increase. ADA price was able to climb above the $0.555 and $0.565 resistance levels to move into a positive zone, like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.600 resistance zone. However, the bears were active near the $0.6420 resistance zone. A high was formed near $0.6419 and the price started a downside correction. There was a move below the $0.600 level.
There was also a break below a key bullish trend line with support at $0.610 on the 4-hour chart of the ADA/USD pair. The price declined below the 23.6% Fib retracement level of the upward move from the $0.4718 swing low to the $0.6419 high.
ADA price is now trading below $0.600 and the 100 simple moving average (4 hours). The bulls might remain active near the $0.5700 support or the 50% Fib retracement level of the upward move from the $0.4718 swing low to the $0.6419 high.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.600 zone. The first resistance is near $0.612. The next key resistance might be $0.620. If there is a close above the $0.620 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.642 region. Any more gains might call for a move toward $0.680.
More Losses in ADA?
If Cardano’s price fails to climb above the $0.600 resistance level, it could continue to move down. Immediate support on the downside is near the $0.570 level.
The next major support is near the $0.5550 level. A downside break below the $0.5500 level could open the doors for a test of $0.5120. The next major support is near the $0.500 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.570, $0.5550, and $0.5120.
Major Resistance Levels – $0.600, $0.6120, and $0.6420.
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Author: Aayush Jindal
