Cardano’s price hit a new multi-month high at $ 0.9860 before correcting lower. ADA was down over 20% but should remain well bid near the $ 0.7000 level.
- ADA started a sharp surge and surged above $ 0.9000 before correcting lower against the US dollar.
- The price is still trading well above $ 0.7000 and the simple moving average of 100 (4 hours).
- The 4-hour chart of the ADA / USD pair (data source from Bitfinex) broke below a major bullish trendline with support near USD 0.8800.
- The pair is likely to consolidate above $ 0.7000 before starting a new move higher in the short term.
Cardano (ADA) corrects profits
For the past few days, the price of cardano has risen steadily above the USD 0.7000 resistance. ADA price even cleared the $ 0.8000 resistance and was well above the 100 (4 hour) simple moving average.
Eventually there was a break above the $ 0.9000 level, but there was no test of the $ 1.00 main level. The price began a downward correction (similar to Bitcoin) after setting a new multi-month high at $ 0.9860. There was a pause below the $ 0.9000 and $ 0.8800 support levels.
There was also a break below a major bullish trendline with support near $ 0.8800 on the 4-hour chart for the ADA / USD pair. The pair was even below the $ 0.7200 support level but remained well bid above $ 0.7000.
It is now trading well above $ 0.7000 and the simple moving average of 100 (4 hours). A low is being formed near $ 0.6919 and the price is currently recovering. It rose above the 23.6% fib retracement level of the recent decline from the high of $ 0.9860 to the low of $ 0.6919.
Source: ADAUSD on TradingView.com
Large resistance is forming on the upside near the USD 0.8500 level. There is also a bearish trendline near $ 0.8500 on the same chart. The trendline coincides with the 50% fib retracement level of the recent drop from the high of $ 0.9860 to the low of $ 0.6919.
A successful break above the USD 0.8500 resistance and the trendline could trigger a new move higher. The next major resistance is at $ 0.9000.
Dips supported?
If cardano’s price fails to hit the $ 0.8400 and $ 0.8500 resistance levels, it could correct lower. Initial support is near the $ 0.7200 level.
The main support is now forming near the USD 0.7000 level. A significant break below the USD 0.7000 support zone could push the price towards the 100 (4 hour) simple moving average at USD 0.6000.
Technical indicators
4 Hour MACD – The MACD for ADA / USD is gaining momentum in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for ADA / USD is currently below the 50 level.
Major support levels – $ 0.7200, $ 0.7000, and $ 0.6000.
Main Resistance Levels – $ 0.8400, $ 0.8500, and $ 0.9000.
