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Key Highlights
- ADA price remained in a downtrend and it declined below the $0.1350 support against the US Dollar (tethered).
- There is a crucial declining channel in place with resistance at $0.1300 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair may correct a few points higher, but upsides could be capped by $0.1300 and $0.1350.
Cardano price fell further against the US Dollar and Bitcoin. ADA/USD is likely to extend the current slide towards the $0.1200 level in the near term.
Cardano Price Analysis
There were minor recoveries above $0.1400 in cardano price against the US Dollar. However, the ADA/USD pair failed to gain momentum above the $0.1400 level and declined sharply. The price broke the $0.1350 and $0.1300 support levels to move into a bearish zone. The decline was such that the price traded to a new bi-monthly low near the $0.1220 level.
At the moment, the price is consolidating above $0.1220 with bearish moves. An initial resistance is near the 23.6% Fib retracement level of the last drop from the $0.1415 high to $0.1223 low. There is also a crucial declining channel in place with resistance at $0.1300 on the hourly chart of the ADA/USD pair. The channel resistance coincides with the 50% Fib retracement level of the last drop from the $0.1415 high to $0.1223 low. Therefore, a proper break above $0.1320 and $0.1350 is needed for a substantial recovery in ADA/USD. Above $0.1350, the price may perhaps test the $0.1400 level.
The chart indicates that the price is following a declining structure from the $0.1550 swing high. If it fails to move above the $0.1350 level, it could decline further. A break below the recent low of $0.1223 might call for a push towards $0.1200.
Hourly MACD – The MACD for ADA/USD is currently in the bearish zone.
Hourly RSI – The RSI for ADA/USD is currently moving lower towards the 30 and 25 levels.
Major Support Level – $0.1200
Major Resistance Level – $0.1350
