Key Highlights
- ADA price declined recently and broke a key support at $0.2300 against the US Dollar (tethered).
- There was a break below an important bullish trend line with support at $0.2450 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair traded towards the $0.2100 level and it seems like it could revisit the $0.2000 zone.
Cardano price tumbled recently against the US Dollar and Bitcoin. ADA/USD could correct higher, but upsides may be capped by the $0.2300 and $0.2400 levels.
Cardano Price Analysis
There was a crucial downside move initiated from the $0.2600 swing high in ADA price against the US Dollar. The price declined and broke many supports such as $0.2500 and $0.2400. More importantly, there was a break below a significant support at $0.2300, opening the doors for more losses. It is now trading well below the $0.2300 level and the 100 hourly simple moving average.
During the decline, there was also a break below an important bullish trend line with support at $0.2450 on the hourly chart of the ADA/USD pair. The pair traded towards $0.2100 and a low was formed at $0.2125. At the moment, the price is consolidating losses above $0.2100. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $0.2383 high to $0.2125 low. Moreover, there is also a bearish trend line with resistance at $0.2280 on the same chart. An intermediate resistance is near the 50% Fib retracement level of the last decline from the $0.2383 high to $0.2125 low.
The chart indicates that if the price corrects higher, it is likely to face sellers near $0.2250 and $0.2300. On the downside, a break below the recent low of $0.2125 may clear the path for a test of $0.2000.
Hourly MACD – The MACD for ADA/USD is currently in the bearish zone.
Hourly RSI – The RSI for ADA/USD is near the oversold levels.
Major Support Level – $0.2125
Major Resistance Level – $0.2300