Cardano price has started a downward correction below the $1.00 area. ADA is consolidating and facing hurdles near the $0.920 and $0.950 levels.
- ADA price started a downward movement below the $1.00 support area.
- The price is trading below $0.950 and the 100 hourly simple moving average.
- There is a solid bearish trend line forming with resistance at $0.92 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could start another increase if it crosses the $0.950 resistance area.
Cardano price starts a new decline
After struggling to clear the $1.00 resistance area, Cardano started a new decline, like Bitcoin and Ethereum. ADA fell below the $0.9650 and $0.950 support levels.
The last high was formed at $0.9495 before the price fell. There was a move below the $0.920 support level. The price fell below the 50% Fib retracement level of the upward move from the swing low at $0.8628 to the swing high at $0.9495.
Cardano price is now trading below $0.925 and the 100-hourly simple moving average. On the upside, the price may face resistance near the $0.920 area. There is also a solid downtrend line forming with resistance at $0.92 on the hourly chart of the ADA/USD pair.
The first resistance is located near $0.9350. The next major resistance could be $0.950. If there is a close above the $0.950 resistance level, the price could start a strong rally. In the mentioned case, the price may rise towards the $1.00 region. Any further gains may call for a move towards $1,050 in the near term.
More losses in ADA?
If Cardano price fails to rise above the $0.920 resistance level, it may start 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 $0.8628 swing low to the $0.9495 swing high.
The next major support is near the $0.865 level. A downside break below $0.8650 could open the doors to a test of $0.820. The next major support is near the $0.8050 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 – $0.8950 and $0.8650.
Major resistance levels – $0.920 and $0.950.
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