Key Highlights
- ADA price declined sharply and is currently trading well below the $0.20 level against the US Dollar (tethered).
- There is a short-term contracting triangle forming with resistance at $0.1800 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair remains at a risk of more declines if it fails to hold the $0.1650 support level.
Cardano price is under pressure against the US Dollar and Bitcoin. ADA/USD may correct a few points, but it could fail to move above the $0.18-0.19 resistance zone.
Cardano Price Support
The past few days were mostly bearish as ADA price declined below the $0.2000 support level against the US Dollar. The price extended losses and even closed below the $0.1900 level. The recent price action was bearish and the price traded towards the $0.1650 level. A low was formed at $0.1670 before the price started a tiny upside recovery.
It failed to even break the 23.6% Fib retracement level of the last downside move from the $0.2296 high to $0.1670 low. It seems like there is a short-term contracting triangle forming with resistance at $0.1800 on the hourly chart of the ADA/USD pair. The pair may continue to trade in a range and it could move above $0.1800. However, there is a crucial resistance near $0.1900. The mentioned $0.1900 was a support earlier and now it is likely to prevent gains. Moreover, the 38.2% Fib retracement level of the last downside move from the $0.2296 high to $0.1670 low is also around $0.191.
Therefore, the $0.18 and $0.19 levels are important resistances. On the downside, the price should stay above the $0.1650 and $0.1600 levels. Should there be a break below $0.1600, the price could head towards the $0.15 level.
Hourly MACD – The MACD for ADA/USD is mostly in the bearish zone.
Hourly RSI – The RSI for ADA/USD is currently just below the 50 level.
Major Support Level – $0.1650
Major Resistance Level – $0.1900
Charts courtesy – Trading View
