Cardano price is showing signs of a downside correction from $1.420 against the US Dollar, similar to bitcoin. ADA price could revisit $1.170 before starting a fresh increase.
Cardano Price Analysis
After forming a base above the $1.000 level, cardano price started a fresh increase against the US Dollar. The ADA/USD pair broke the $1.250 and $1.350 resistance levels.
It even spiked above the $1.400 level and settled above the 55 simple moving average (4-hours). However, the bulls failed to clear the $1.420 resistance zone. The recent high was formed near $1.419 before the price started a downside correction.
There was a break below the 23.6% Fib retracement level of the upward move from the $1.025 swing low to $1.419 high. There was also a break below a key bullish trend line with support at $1.350 on the 4-hours chart.
ADA is now trading close the $1.280 support and the 55 simple moving average (4-hours). An immediate support is near the $1.250 level. If there is a downside break below the $1.250 support, the price could continue to move down towards the $1.175 support.
An intermediate support could be $1.220. It is near the 50% Fib retracement level of the upward move from the $1.025 swing low to $1.419 high. The main support sits at $1.150, below which the price could dive towards the $1.000 level.
On the upside, an immediate resistance is seen near the $1.350 level. The main resistance is near the $1.420 level. A clear break above the $1.420 resistance zone could set the pace for a move towards the $1.50 level. The next stop for the bulls could be near the $1.650 level.
Cardano (ADA) Price
The chart indicates that ADA price is clearly trading close the $1.280 support and the 55 simple moving average (4-hours). Overall, the price could correct lower, but the bulls are likely to remain active near $1.170 and $1.150.
4 hours MACD – The MACD for ADA/USD is now losing pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is approaching the 50 level.
Key Support Levels – $1.250 and $1.115.
Key Resistance Levels – $1.350 and $1.420.
Source: Read Full Article