Cardano’s price is struggling to break the $ 1,200 resistance zone. ADA is exposed to the risk of further losses in the short term below the $ 1.050 and $ 1.020 support levels.
- ADA is struggling to recover but is still well above the $ 1,000 level against the US dollar.
- The price is still facing hurdles near $ 1,200 and the simple moving average of 100 (4 hours).
- A large bearish trendline is forming on the 4-hour chart of the ADA / USD pair (data source from Bitfinex) with resistance near USD 1.150.
- The pair could continue to decline unless there is a significant break above $ 1.150 and $ 1.200 in the near term.
Cardano (ADA) remains at risk
After a sharp rally, Cardano’s price struggled to stretch gains above $ 1.487. ADA price started a downward correction and traded below key support near the $ 1,200 level.
The price even traded below the USD 1,100 support and was below the simple moving average of 100 (4 hours). A low is being formed near $ 1.036 and the price is currently correcting higher. There was a pause above the $ 1,100 and $ 1,120 resistance levels.
There was a break above the 23.6% fib retracement level of the downward move from the high of $ 1.487 to the low of $ 1.036. The price was even above the resistance of $ 1,150 and the simple moving average of 100 (4 hours).
Source: ADAUSD on TradingView.com
However, there was no uptrend above the USD 1,200 resistance. A large bearish trendline is also forming on the 4-hour chart of the ADA / USD pair with resistance near USD 1.150. The pair is now trading well below the 50% fib retracement level of the downward move from the high of $ 1.487 to the low of $ 1.036.
On the downside, the $ 1.050 level is decent support. The main support is now forming near the USD 1.035 level. A downside break below the $ 1.035 level could open the doors for a move towards the $ 1,000 and $ 0.9500 levels in the short term.
Upsides Capped?
If cardano’s price stays above the USD 1.050 support, an attempt could be made to eliminate the trendline resistance at USD 1.150. If the bulls are successful, the price could move towards the $ 1,200 and $ 1,220 levels.
In the case mentioned, the price could even rise above the USD 1,250 level. Further gains could move the price towards $ 1,450.
Technical indicators
4 Hour MACD – The MACD for ADA / USD is struggling to gain momentum in the bullish zone.
4-Hour RSI (Relative Strength Index) – The RSI for ADA / USD is currently below the 50 level.
Major support levels – $ 1,050, $ 1,035, and $ 1,000.
Main Resistance Levels – $ 1,150, $ 1,200, and $ 1,220.
