Cardano (ADA) is correcting gains from the $0.80 resistance zone. ADA could start a new increase if it remains above the $0.6880 support zone.
- The ADA price is slowly falling from the $0.80 zone.
- The price is trading below $0.720 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support at $0.6880 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair could attempt another rise if bulls remain active above the $0.680 support.
Cardano Price Gains Major Support
After forming a base above the USD 0.580 level, Cardano started a new increase. ADA price could climb above the USD 0.620 and USD 0.680 resistance levels to move into a positive zone like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.700 resistance zone. However, the bears were active near the $0.80 resistance zone. A high was formed near $0.8097 and the price started a downward correction. There was a move below the USD 0.750 level.
The price fell below the 23.6% Fib retracement level of the upwave from the $0.5754 swing low to the $0.8097 high. The ADA price is now trading below $0.7250 and the 100 simple moving average (4 hours).
There is also a major bullish trendline forming with support at $0.6880 on the 4-hour chart of the ADA/USD pair. The trendline is close to the 50% Fib retracement level of the upward wave from the $0.5754 swing low to the $0.8097 high.
Source: ADAUSD on TradingView.com
The bulls could remain active near the USD 0.680 support. On the upside, immediate resistance is near the $0.7220 zone. The first resistance is near $0.740. The next major resistance could be at USD 0.800. If there is a close above the USD 0.800 resistance, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.8250 region. Further gains could require a move towards $0.850.
More losses in ADA?
If Cardano price fails to rise above the USD 0.7220 resistance level, it could continue to decline. The immediate downside support is near the $0.6880 level.
The next major support is near the $0.680 level. A downside break below the USD 0.680 level could open the doors for a test of USD 0.6350. The next major support is near the $0.6120 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – $0.6880, $0.6800 and $0.6350.
Major resistance levels – $0.7220, $0.7400 and $0.8000.
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