Cardano price started a new decline below the $0.3550 area. ADA is consolidating above $0.3400 and may attempt a recovery wave.
- ADA price started moving lower below the $0.3500 support level.
- The price is trading below the $0.3520 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance at $0.3460 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair can continue moving down if it remains below the $0.3520 resistance area.
Cardano price enhances losses
After testing the $0.3680 resistance level, Cardano struggled to continue higher. ADA formed a short-term top and started a new decline like 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 $0.3409 and the price is now consolidating losses. There was a slight move above the $0.3450 level. The price tested the 23.6% Fibonacci retracement level of the downward move from the high of $0.3681 to the low of $0.3409.
Cardano price is now trading below $0.3520 and the 100-hourly simple moving average. On the upside, the price may face resistance near the $0.3460 area. There is also a major bearish trend line forming with resistance at $0.3460 on the hourly chart of the ADA/USD pair.
The first resistance is near $0.3520 or the 50% Fibonacci retracement level of the downward move from the high of $0.3681 to the low of $0.3409. The next major resistance could be $0.3550. If there is a close above the $0.3550 resistance level, the price could start a strong rally. In the mentioned case, the price may rise towards the $0.3680 area. Any further gains may require a move towards $0.400.
More downsides to the ADA?
If Cardano price fails to rise above the $0.3550 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 $0.3250. The next major support is near the $0.3120 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 $0.3350.
Key resistance levels – $0.3460 and $0.3550.
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