Cardano Price Struggles to Break Above Key Resistance Level
As a crypto enthusiast looking to invest in Cardano (ADA), you may be interested to know that the ADA price is currently facing challenges in gaining bullish momentum above the $0.4750 zone. Here are some key points to consider:
- ADA price trading below $0.460 and the 100-hourly simple moving average
- Break above a connecting bearish trend line with resistance at $0.4570 on the hourly chart of the ADA/USD pair (data source from Kraken)
- Potential bullish momentum if there is a close above $0.4620
Cardano Price Tests Support
In recent trading sessions, Cardano initiated a downward movement after failing to surpass the $0.4750 resistance level. ADA dropped below the $0.4620 support and tested a critical support level at $0.4520, mirroring similar movements in Bitcoin and Ethereum. Some key observations include:
- Formation of a low at $0.4516 with the price currently consolidating losses
- Minor recovery wave above the $0.4550 zone
- Testing the 23.6% Fib retracement level from the recent decline
Currently, Cardano is trading below $0.4620 and the 100-hourly simple moving average, with immediate resistance near the $0.4960 zone. The first resistance stands at $0.4620 or the 50% Fib retracement level, with further resistance at $0.4750. A close above this level could trigger a strong rally towards the $0.50 region, possibly aiming for $0.5250.
Potential for Further Losses in ADA
If Cardano’s price fails to breach the $0.4620 resistance level, a continuation of downward movement could be anticipated. Key support levels to monitor include:
- Immediate support near the $0.4520 level
- Main support at the $0.4460 level
- Possible downside break opening doors for a test of $0.4320 and $0.420 levels
Technical Indicators for Cardano
As a savvy investor, it’s crucial to keep an eye on technical indicators. Here are some observations:
- Hourly MACD showing a loss of momentum in the bearish zone
- Hourly RSI (Relative Strength Index) dropping below the 50 level
When considering support and resistance levels, major points to watch out for include $0.4520, $0.4460, $0.4320 on the downside, and $0.4620, $0.4750 on the upside.
Sources:
Kraken
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