Cardano price started a downward correction from the $1,325 zone. ADA is consolidating and faces obstacles near the $1.20 and $1,240 levels.
- ADA price started a pullback after it failed to stay above $1.30.
- The price is trading below $1.20 and the 100 hourly simple moving average.
- A key bearish trend line is forming with resistance at $1.20 on the hourly chart of the ADA/USD pair (data feed from Kraken).
- The pair could start another rise if it breaks the $1,240 resistance zone.
Cardano price foresees a new increase
After struggling above $1.30, Cardano started a downward correction. ADA outperformed Bitcoin and Ethereum with a drop below the $1.20 level. The price even spiked below $1,150 before the bulls emerged.
A low was formed at $1.1173 before the price started a new rise. There was a move above the $1.140 and $1.1550 resistance levels. The price surpassed the 50% Fibonacci retracement level of the downside move from the high of $1,326 to the low of $1,117.
However, the bears are now active near the $1.25 area. They protected the 61.8% Fibonacci retracement level from the downside move from the high of $1.326 to the low of $1.117.
Cardano price is now trading below $1.20 and the 100 hourly simple moving average. On the upside, the price could face resistance near the $1.20 zone. There is also a key bearish trend line forming with resistance at $1.20 on the hourly chart of the ADA/USD pair.
The first resistance is near $1.2250. The next key resistance could be $1.2450. If it closes above the $1.2450 resistance, the price could start a strong rally. In the indicated case, the price could rise towards the region of $1.2780. Any further gains could require a move towards $1,320.
Another ADA decline?
If Cardano price fails to break above the $1.20 resistance level, it could start another decline. Immediate support on the downside is near the $1,150 level.
The next major support is near the $1,120 level. A downside break below the $1,120 level could open the doors to a test of $1,080. The next major support is near the $1.0450 level, where the bulls could emerge.
Technical Indicators
Hourly MACD: The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Main support levels: $1,120 and $1,080.
Main resistance levels: $1.20 and $1.2450.
