- ADA price settled below the $0.1600 level and it is currently in a bearish zone against the US Dollar (tethered).
- There is a major contracting triangle forming with resistance at $0.1540 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair must break the $0.1500 and $0.1550 resistance levels to start an upward move.
Cardano price is struggling to move higher against the US Dollar and Bitcoin. ADA/USD has to settle back above $0.1550 to start a fresh recovery in the near term.
Cardano Price Upside Hurdle
There were further losses from the $0.1800 swing high in ADA price against the US Dollar. The price declined below the $0.1500 and $0.1400 levels to move deep into the red zone. It traded towards the $0.1300 level before starting an upside correction. An intermediate swing low was formed at $0.1378 from where the current upside wave was started.
It moved above the 38.2% Fib retracement level of the last downside move from the $0.1589 high to $0.1378 low. However, the upside move was protected by the $0.1500 level. Moreover, the 61.8% Fib retracement level of the last downside move from the $0.1589 high to $0.1378 low acted as a resistance. At the moment, there is a major contracting triangle forming with resistance at $0.1540 on the hourly chart of the ADA/USD pair. The pair has to move above the $0.1540 and $0.1550 resistance levels to recover further.
However, a proper close above the $0.1600 level would be great to trigger an upside wave. If the price fails to move above the $0.1550 level, there is a chance of a downside reaction back towards $0.1400. Below $0.1400, there is a risk of ADA trading to a new low.
Hourly MACD – The MACD for ADA/USD is struggling to gain momentum in the bullish zone.
Hourly RSI – The RSI for ADA/USD is moving lower towards the 35 level.
Major Support Level – $0.1400
Major Resistance Level – $0.1550
Charts courtesy – Trading View