Key Highlights
- ADA price recovered recently, but it failed to stay above $0.5000 against the US Dollar (tethered).
- There is a new major declining channel forming with resistance at $0.4140 on the hourly chart of ADA/USD (data feed via Bittrex).
- The pair is currently holding a major support area near the $0.3400-0.3500 levels.
Cardano price is struggling to gain upside momentum against the US Dollar and Bitcoin. ADA/USD has to move above the $0.4200 to gain traction.
Cardano Price Resistance
There was a decent bounce in ADA price from the $0.2900 level against the US Dollar. The price traded above the $0.3000 and $0.4000 resistance levels. It even traded above the $0.5000 level, but it failed to remain above the $0.5000 level. ADA made a short-term top at $0.5185 and started a downside move. It broke the $0.4000 support to trade near the $0.3500 support area.
A low was formed at $0.3505 and it seems like the price is looking to trade higher. It is testing the 23.6% Fib retracement level of the last decline from the $0.5185 high to $0.3505 low. More importantly, there is a new major declining channel forming with resistance at $0.4140 on the hourly chart of ADA/USD. The pair has to break the channel resistance at $0.4140-0.4200 to gain upside momentum. Moreover, it has to clear the 38.2% Fib retracement level of the last decline from the $0.5185 high to $0.3505 low.
A successful close above the $0.4200 level could open the doors for more gains. ADA price could move above the $0.5000 level in the mentioned scenario. An intermediate resistance is near $0.4500 and the 61.8% Fib retracement level of the last decline from the $0.5185 high to $0.3505 low. On the downside, the $0.3500 support holds a lot of importance in the short term.
Hourly MACD – The MACD for ADA/USD is currently reducing its bearish slope.
Hourly RSI – The RSI for ADA/USD is just below the 50 level.
Major Support Level – $0.3500
Major Resistance Level – $0.4200
Charts courtesy – Cryptowat, Bittrex
