Cardano (ADA) has entered a volatile phase as its price has begun to decline, starting from the $0.9250 mark. The ADA cryptocurrency is currently grappling with losses and encountering difficulty in surpassing the $0.80 obstacle.
ADA’s price began its descent from the $0.9250 mark, and currently trades under $0.850, below the 100-hourly simple moving average. On ADA/USD’s hourly chart, a key bearish trend line has formed with the resistance set at $0.8050 (Kraken data).
If ADA’s trading price falls below the $0.7650 support zone, it could trigger another dip. After a tough fight to maintain above the $0.950 level, Cardano, akin to Bitcoin and Ethereum, started a new decline, falling below the $0.90 and $0.850 support levels.
A significant drop below the $0.60 support zone ensued, hitting a low of $0.5105, after which a moderate upward movement was observed. The price managed to surpass $0.60 and $0.70 resistance levels, with bulls pushing the price above the 50% Fib retracement level of the drop from the $0.9828 high to the $0.5105 low.
However, the bears seem to have regained activity near the $0.80 zone. The ADA/USD pair’s hourly chart shows a key bearish trend line with resistance at $0.8050. Cardano’s price is currently below $0.80 and the 100-hourly simple moving average. Resistance might be met at the $0.80 zone on the upside, and the 61.8% Fib retracement level of the drop from the $0.9828 high to the $0.5105 low.
The initial resistance is near $0.820, followed by a significant resistance around $0.850. If the price can hold above the $0.850 resistance, a strong rally could be anticipated, potentially pushing the price towards the $0.9250 range. Further gains could signal a move towards $1.00 in the short term.
However, if Cardano fails to breach the $0.80 resistance, another decline could be on the horizon. The immediate support on the downside is around the $0.7650 mark, followed by the next major support near the $0.7230 level. A break below the $0.7230 level could lead to a test of $0.6880, with the next major support at the $0.6250 level where bulls might re-emerge.
Technical Indicators:
Hourly MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major Support Levels – $0.7650 and $0.7230.
Major Resistance Levels – $0.8000 and $0.8200.
