Cardano (ADA) corrected gains and tested the USD 0.4520 support zone. ADA needs to stay above the $0.450 support to make another upward move.
- ADA price is struggling to gain bullish momentum above the $0.4750 zone.
- The price is trading below $0.460 and the 100-hour moving average.
- There was a break above a connecting bearish trendline with resistance at $0.4570 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could gain bullish momentum if there is a close above $0.4620.
Support for Cardano price tests
Over the past few sessions, Cardano started a downward move after failing to clear the USD 0.4750 resistance. ADA dipped below the $0.4620 support and tested the key support at $0.4520, as did Bitcoin and Ethereum.
A low was formed at $0.4516 and the price is now consolidating losses. There was a small recovery wave above the $0.4550 zone. There was a break above a connecting bearish trendline with resistance at $0.4570 on the hourly chart of the ADA/USD pair. The pair tested the 23.6% Fib retracement level from the recent decline from the $0.4743 swing high to the $0.4516 low.
Cardano is now trading below $0.4620 and the 100-hour moving average. On the upside, immediate resistance is near the $0.4960 zone. First resistance is near $0.4620 or the 50% Fib retracement level of the recent decline from the $0.4743 swing high to the $0.4516 low.
The next major resistance could be at $0.4750. If there is a close above the resistance at $0.4750, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.50 region. Further gains could require a move towards $0.5250.
More losses in ADA?
If Cardano price fails to rise above the USD 0.4620 resistance level, it could continue to decline. The immediate downside support is near the $0.4520 level.
The next major support is near the $0.4460 level. A downside break below the USD 0.4460 level could open the doors for a test of USD 0.4320. The next major support is near the $0.420 level.
Technical indicators
Hourly MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels – $0.4520, $0.4460 and $0.4320.
Major resistance levels – $0.4620 and $0.4750.