Cardano price started a bearish correction below the $1.00 zone. ADA is consolidating and facing barriers near the $0.920 and $0.950 levels.
- ADA price started a bearish move below the $1.00 support zone.
- The price is trading below $0.950 and the 100 hourly simple moving average.
- A connected downtrend line is forming with resistance at $0.92 on the hourly chart of the ADA/USD pair (data source from Kraken).
- If it clears the $0.950 resistance zone, the pair could start another rally.
Cardano price starts with fresh decline
After trying to clear the $1.00 resistance zone, Cardano started a fresh decline Bitcoin and Ethereum. ADA fell below the $0.9650 and $0.950 support levels.
The recent high was formed at $0.9495 before the decline. There was a move below the $0.920 support level. The price fell below the 50% retracement fib level of the uptrend from $0.8628 to a high of $0.9495.
Cardano price is now trading below $0.925 and the 100 hourly SMA. In the uptrend, the price may face resistance near the $0.920 area. A bearish trend line is also forming with resistance at $0.92 on the hourly chart of the ADA/USD pair.
The first resistance is near $0.9350. The next key resistance may be $0.950. If there is a break above the $0.950 resistance, the price could start a strong rally. In the aforementioned case, the price could rise towards the $1.00 region. Any further gains may require a move towards $1.050 in the short term.
More harm in the ADA?
If the Cardano price fails to climb above the $0.920 resistance level, it could initiate another decline. Immediate support on the downside is near the $0.8950 level or the 61.8% Fib retracement level of the upward move from the swing low of $0.8628 to the high of $0.9495.
The next major support is near the $0.865 level. A downside break below the $0.8650 level could open the door for a test of $0.820. The next major support is near the $0.8050 level, where bulls may emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is rising in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.8950 and $0.8650.
Key resistance levels – $0.920 and $0.950.
