Cardano price started a downward correction from the $1,325 area. ADA is strengthening and is facing hurdles near the $1.20 and $1.240 levels.
- ADA price started to decline after failing to stay above $1.30.
- The price is trading below the $1.20 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance at $1.20 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could start another increase if it crosses the $1,240 resistance area.
Cardano price is looking forward to a new increase
After struggling above $1.30, Cardano began a downward correction. ADA Underperformed Bitcoin and Ethereum falling below the $1.20 level. The price even rose below $1,150 before the bulls showed up.
The bottom was formed at $1.1173 before the price started a new rise. There was a move above the $1.140 and $1.1550 resistance levels. The price crossed the 50% Fibonacci retracement level of the downward move from the high of $1,326 to the low of $1,117.
However, the bears are now active near the $1.25 area. They protected the 61.8% Fibonacci retracement level of the downward move from the high of $1,326 to the low of $1,117.
Cardano price is now trading below the $1.20 level and the 100 hourly simple moving average. On the upside, the price may face resistance near the $1.20 area. There is also a major bearish trend line forming with resistance at $1.20 on the hourly chart of the ADA/USD pair.
The first resistance is located near $1.2250. The next major resistance could be $1.2450. If there is a close above the $1.2450 resistance level, the price could start a strong rally. In the mentioned case, the price may rise towards the $1.2780 area. Any further gains may require a move towards the $1,320 level.
Another rollback in the ADA?
If Cardano price fails to rise above the $1.20 resistance level, it may start another decline. Immediate support on the downside is near the $1,150 level.
The next major support is near the $1,120 level. A downside break below $1,120 could open the doors to a test of $1,080. The next major support is near the $1.0450 level where the bulls may emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $1,120 and $1,080.
Key resistance levels – $1.20 and $1.2450.
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