Key Highlights
- ADA price traded further lower and formed a low at $0.2615 before starting a recovery against the US Dollar (tethered).
- There was a break above a key bearish trend line with resistance at $0.3300 on the hourly chart of ADA/USD (data feed via Bittrex).
- The pair is currently struggling to move above the $0.3700 level, but there are a few positive signs.
Cardano price has recovery well during the past few sessions against the US Dollar and Bitcoin. ADA/USD now has to move above $0.4000 to gain upside momentum.
Cardano Price Recovery
There were further slides in ADA price below the $0.4000 level against the US Dollar. The price traded below the $0.3000 and $0.2800 support levels to move towards $0.2500. A low was formed at $0.2615 from where it started an upside recovery. It was successful in moving above the 23.6% Fib retracement level of the last drop from the $0.5185 high to $0.2615 low.
During the upside move, there was a break above a key bearish trend line with resistance at $0.3300 on the hourly chart of ADA/USD. The pair even moved above the $0.3500 resistance level, but it failed to gain momentum. It traded close to the 50% Fib retracement level of the last drop from the $0.5185 high to $0.2615 low, but failed. It seems like the $0.3800 and $0.3900 levels are important resistances. At the moment, the price is moving lower and is testing the $0.3200-0.3300 support area.
To gain further upside momentum, the price has to move above the $0.4000 level. The next major resistance above $0.4000 is at $0.5000. On the downside, if the price fails to hold the $0.3200 support, there is a risk of further slides below the $0.3000 level.
Hourly MACD – The MACD for ADA/USD has reduced most of its bullish slope.
Hourly RSI – The RSI for ADA/USD is just around the 50 level.
Major Support Level – $0.3200
Major Resistance Level – $0.4000
Charts courtesy – Cryptowat, Bittrex
