The price of Cardano has initiated a downward correction from the $1.325 area. ADA is currently consolidating and encountering challenges around the $1.20 and $1.240 price points.
- The price of ADA commenced a retracement after it was unable to maintain its position above $1.30.
- The current trading price is below $1.20 and the 100-hourly simple moving average.
- A significant bearish trend line is emerging, presenting resistance at $1.20 on the hourly chart for the ADA/USD pair (data sourced from Kraken).
- The pair may initiate another upward movement if it breaks through the $1.240 resistance area.
Cardano Price Targets Fresh Upsurge
After struggling to remain above $1.30, Cardano entered a downward correction. ADA underperformed compared to Bitcoin and Ethereum, dropping below the $1.20 mark. The price even dipped beneath $1.150 before buyers stepped in.
A low of $1.1173 was established prior to a fresh upward movement. The price moved past the $1.140 and $1.1550 resistance thresholds. It also exceeded the 50% Fibonacci retracement level of the downward movement from the $1.326 swing high to the $1.117 low.
Nonetheless, bears are now active around the $1.25 level. They defended the 61.8% Fibonacci retracement level from the retreat between the $1.326 swing high and the $1.117 low.
Cardano’s price is presently trading below $1.20 and the 100-hourly simple moving average. On the upside, resistance may be encountered near the $1.20 area. Additionally, there is a crucial bearish trend line forming with resistance at $1.20 on the hourly chart of the ADA/USD pair.
The initial resistance is around $1.2250. The subsequent key resistance could be at $1.2450. Should the price close above the $1.2450 barrier, it may trigger a robust rally. In such a scenario, the price might ascend towards the $1.2780 region. Further upward movement could lead to a push towards $1.320.
Another Drop for ADA?
If Cardano’s price fails to surpass the $1.20 resistance level, it might instigate another drop. Immediate support on the downside is located near the $1.150 threshold.
The next significant support level is around $1.120. A downside breach beneath the $1.120 mark could pave the way for a test of $1.080. The next critical support is near the $1.0450 level where buyers may resurface.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is gaining traction within the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD has fallen below the 50 mark.
Major Support Levels – $1.120 and $1.080.
Major Resistance Levels – $1.20 and $1.2450.
