Cardano price started a new decline below the $0.3565 area. ADA is consolidating above $0.3420 and may attempt a recovery wave.
- ADA price started moving lower 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 the major downtrend line with resistance at $0.3460 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair may attempt a recovery wave if it crosses the $0.3520 resistance area.
Cardano price enhances losses
After testing the resistance level at $0.3700, Cardano struggled to continue higher. ADA formed a short-term top and started a new decline, unlike Bitcoin and Ethereum. There was a move below the $0.3550 and $0.3500 support levels.
The price even fell below $0.3450 before the bulls emerged. The bottom was formed at $0.3394 and the price is now consolidating losses. There was a slight move above the $0.3420 level. The price crossed the 23.6% Fibonacci retracement level of the downward move from the high of $0.3705 to the low of $0.3394.
Moreover, there was a break above the major downtrend 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 may face resistance near the $0.3515 area. The first resistance is near $0.3550 or the 50% Fibonacci retracement level of the downward move from the high of $0.3705 to the low of $0.3394. The next major resistance could be $0.3620.
If there is a close above the $0.3620 resistance level, the price could start a strong rally. In the mentioned case, the price may rise towards the $0.3700 area. Any further gains may require a move towards $0.3880.
More downsides to the ADA?
If Cardano price fails to rise above the $0.350 resistance level, it may 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 $0.3400 could open the doors to a test of $0.3220. The next major support is near the $0.3100 level where the bulls may 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 – $0.3400 and $0.3220.
Key resistance levels – $0.3500 and $0.3550.