Cardano Price Technical Analysis – ADA/USD Could Bounce Back

Key Highlights

  • ADA price started a downside correction after trading as high as $0.3103 against the US Dollar (tethered).
  • There is a short-term bearish trend line forming with resistance at $0.2850 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
  • The pair remains supported on the downside around the $0.2650 and $0.2750 levels.

Cardano price is eyeing further upsides against the US Dollar and Bitcoin. ADA/USD could bounce back after testing the $0.2650 support.

Cardano Price Supports

There were further gains above the $0.2500 level in ADA price against the US Dollar. The price moved above the $0.2800 and $0.3000 resistance levels, and traded as high as $0.3103. Later, a downside correction was initiated and the price moved below $0.2800. However, the $0.2650 support region acted as a strong support and prevented further declines.

A low was formed at $0.2681 and the price was rejected from the 100 hourly simple moving average. It moved higher and traded above the 50% Fib retracement level of the last drop from the $0.3103 high to $0.2681 low. However, the upside wave faced sellers near $0.3000. Moreover, the 61.8% Fib retracement level of the last drop from the $0.3103 high to $0.2681 low acted as a resistance. Additionally, there is a short-term bearish trend line forming with resistance at $0.2850 on the hourly chart of the ADA/USD pair. Once the pair breaks the trend line resistance and then $0.3000, it could resume its uptrend.

The chart suggests that the price is well supported on the downside above the $0.2650 level. If there is a dip or an extended correction, it won’t be easy for sellers to clear $0.2650. On the flip side, a break above $0.3000 and $0.3100 may perhaps call for a rally towards $0.3500.

Hourly MACD – The MACD for ADA/USD is slightly in the bearish zone.

Hourly RSI – The RSI for ADA/USD is now well below the 50 with neutral signs.

Major Support Level – $0.2650

Major Resistance Level – $0.3000

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