Cardano (ADA) is correcting gains from the $0.80 resistance zone. ADA could start a fresh increase if it stays above the $0.6880 support zone.
ADA price is slowly moving lower from the $0.80 zone.
The price is trading below $0.720 and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support at $0.6880 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
The pair could attempt a fresh increase if the bulls remain active above the $0.680 support.
Cardano Price Reaches Key Support
After forming a base above the $0.580 level, Cardano started a fresh increase. ADA price was able to climb above the $0.620 and $0.680 resistance levels to move into a positive zone, like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.700 resistance zone. However, the bears were active near the $0.80 resistance zone. A high was formed near $0.8097 and the price started a downside correction. There was a move below the $0.750 level.
The price declined below the 23.6% Fib retracement level of the upward wave from the $0.5754 swing low to the $0.8097 high. ADA price is now trading below $0.7250 and the 100 simple moving average (4 hours).
There is also a key bullish trend line forming with support at $0.6880 on the 4-hour chart of the ADA/USD pair. The trend line is near the 50% Fib retracement level of the upward wave from the $0.5754 swing low to the $0.8097 high.
Source: ADAUSD on TradingView.com
The bulls might remain active near the $0.680 support. On the upside, immediate resistance is near the $0.7220 zone. The first resistance is near $0.740. The next key resistance might be $0.800. If there is a close above the $0.800 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.8250 region. Any more gains might call for a move toward $0.850.
More Losses in ADA?
If Cardano’s price fails to climb above the $0.7220 resistance level, it could continue to move down. Immediate support on the downside is near the $0.6880 level.
The next major support is near the $0.680 level. A downside break below the $0.680 level could open the doors for a test of $0.6350. The next major support is near the $0.6120 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.6880, $0.6800, and $0.6350.
Major Resistance Levels – $0.7220, $0.7400, and $0.8000.
