Cardano Price Technical Analysis – ADA/USD Just Broke Crucial Support?
- ADA price struggled to gain momentum above the $0.40 level and moved down against the US Dollar (tethered).
- There was a break below a major ascending channel with support at $0.3800 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair has to stay above the $0.3700 support to avoid further declines in the near term.
Cardano price is slightly bearish against the US Dollar and Bitcoin. ADA/USD may decline a few points, but it may later bounce back to retest the $0.40 resistance.
Cardano Price Resistance
There was a steady price action in ADA price recently above the $0.3500 level against the US Dollar. The price even traded above the $0.4000 resistance, but it was not able to gain upside momentum. A high was formed at $0.4044 from where the price started a downside correction. It moved below the 23.6% Fib retracement level of the last wave from the $0.3420 low to $0.4044 high.
More importantly, there was a break below a major ascending channel with support at $0.3800 on the hourly chart of the ADA/USD pair. The pair is now trading below the $0.3900 level. However, the downside move was protected by the 50% Fib retracement level of the last wave from the $0.3420 low to $0.4044 high. The pair is currently holding the $0.3700 support and it must stay above the mentioned levels. If it fails to stay above the $0.3700 level, it could even test the 76.4% Fib retracement level of the last wave from the $0.3420 low to $0.4044 high at $0.3553.
On the upside, the price may continue to struggle near $0.4000. A successful break above the $0.4000 level could ignite more gains toward $0.5000 in the near term.
Hourly MACD – The MACD for ADA/USD is currently in the bearish zone.
Hourly RSI – The RSI for ADA/USD is moving lower and is currently below the 50 level.
Major Support Level – $0.3700
Major Resistance Level – $0.4000
Charts courtesy – Cryptowat, Bittrex
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