Key Highlights
- ADA price declined sharply and broke the $0.0800 and $0.0740 support levels against the US Dollar (tethered).
- There is a key bearish trend line formed with resistance at $0.0750 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair may correct higher above $0.0750, but it could face a strong resistance near $0.0800.
Cardano price is under a lot of pressure against the US Dollar and Bitcoin. ADA/USD is correcting higher, but upsides are likely to capped near $0.0800.
Cardano Price Analysis
In the last analysis, we discussed that cardano price could correct lower towards $0.0820 or $0.0800 against the US Dollar. The ADA/USD pair did correct lower, but sellers gained momentum below the $0.0800 support. As a result, there was a sharp downside move and the price declined below the $0.0750 support. The price even broke the $0.0700 support and traded as low as $0.0694.
Later, the price started an upside correction and traded above $0.0700 and $0.0715. It just moved above the 23.6% Fibonacci retracement level of the recent decline from the $0.0858 high to $0.0694 low. However, there is a major resistance near $0.0750. Moreover, there is a key bearish trend line formed with resistance at $0.0750 on the hourly chart of the ADA/USD pair. Above the trend line resistance, the price may perhaps climb towards the $0.0800 level, which is likely to act as a resistance. An intermediate resistance is near the 50% Fibonacci retracement level of the recent decline from the $0.0858 high to $0.0694 low at $0.0776.
The chart indicates that ADA price is correcting positively above $0.0720. However, it won’t be easy for buyers to clear the $0.0776 and $0.0800 resistance levels. On the downside, the key support is at $0.0700, below which the price may slide toward $0.0650.
Hourly MACD – The MACD for ADA/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ADA/USD is moving higher towards the 50 level.
Major Support Level – $0.0700
Major Resistance Level – $0.0800