Cardano (ADA) Eyes a Potential Recovery: Can It Bounce Back?
Cardano price started a fresh decline below the $0.3565 zone. ADA is consolidating above $0.3420 and might attempt a recovery wave.
- ADA price started a downward move below the $0.3520 support level.
- The price is trading below $0.3500 and the 100-hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $0.3460 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could attempt a recovery wave if it clears the $0.3520 resistance zone.
Cardano Price Consolidates Losses
After testing the $0.3700 resistance, Cardano struggled to continue higher. ADA formed a short-term top and started a fresh decline, unlike Bitcoin and Ethereum. There was a move below the $0.3550 and $0.3500 support levels.
The price even declined below $0.3450 before the bulls appeared. A low was formed at $0.3394 and the price is now consolidating losses. There was a minor move above the $0.3420 level. The price cleared the 23.6% Fib retracement level of the downward move from the $0.3705 swing high to the $0.3394 low.
Besides, there was a break above a key bearish trend line with resistance at $0.3460 on the hourly chart of the ADA/USD pair. Cardano price is now trading below $0.350 and the 100-hourly simple moving average.
On the upside, the price might face resistance near the $0.3515 zone. The first resistance is near $0.3550 or the 50% Fib retracement level of the downward move from the $0.3705 swing high to the $0.3394 low. The next key resistance might be $0.3620.
If there is a close above the $0.3620 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.3700 region. Any more gains might call for a move toward $0.3880.
More Downsides in ADA?
If Cardanos price fails to climb above the $0.350 resistance level, it could start another decline. Immediate support on the downside is near the $0.3420 level.
The next major support is near the $0.3400 level. A downside break below the $0.3400 level could open the doors for a test of $0.3220. The next major support is near the $0.3100 level where the bulls might 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.
Major Support Levels $0.3400 and $0.3220.
Major Resistance Levels $0.3500 and $0.3550.
Source: NewsBTC.com
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