Cardano Price Shows Signs of Recovery
Following a recent rally, Cardano (ADA) encountered resistance near the $0.675 level. Unlike Bitcoin and Ethereum, ADA experienced a decline below key support levels at $0.620 and $0.600.
The price dropped below the $0.550 support level and the 100 simple moving average (4 hours). It eventually found support near the $0.4650 zone. Currently, ADA is attempting to recover above the $0.500 resistance level.
ADA is currently trading below the 100 simple moving average (4 hours) and $0.570. A bearish trend line is also forming with resistance near $0.545 on the 4-hour chart of the ADA/USD pair.
The immediate resistance levels are at $0.532, followed by $0.545 and $0.550. If the price breaks above these levels, it could lead to a strong rally towards the $0.620 region.
Possible Downside for ADA?
If ADA fails to surpass the $0.545 resistance level, it could experience another decline. The initial support on the downside is around $0.500, followed by a major support level at $0.465.
A break below $0.465 could potentially lead to a test of $0.432 and then further support at $0.420.
Technical Indicators
The MACD for ADA/USD on the 4-hour chart indicates a loss of momentum in the bearish zone, while the RSI has dropped below the 50 level.
Major Support Levels: $0.500, $0.465, $0.432
Major Resistance Levels: $0.532, $0.545, $0.570
Hot Take: Cardano’s Recovery Hangs in the Balance
Cardano (ADA) is currently attempting to recover from its recent decline, but faces strong resistance near the $0.545 level. If ADA fails to break above this level, it could experience another downward move towards the $0.465 support zone.
On the other hand, a successful break above $0.545 could lead to a significant rally towards the $0.620 region. Traders should closely monitor these key levels to determine the next direction for ADA.
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