Cardano Price Technical Analysis – ADA/USD Remains in Downtrend

Key Highlights

  • ADA price corrected higher recently, but it faced a strong hurdle near $0.2820 against the US Dollar (tethered).
  • There is a crucial bearish trend line forming in place with resistance at $0.2750 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
  • The pair could decline back towards $0.2400 if it fails to move above the $0.2820 pivot level.

Cardano price is facing many barriers against the US Dollar and Bitcoin. ADA/USD must climb above $0.2820 and the 100 hourly SMA to gain upside momentum.

Cardano Price Resistances

After a major downside move, ADA price found support near the $0.2300 level against the US Dollar. A low was formed at $0.2335 before the price started an upside correction. It recovered and moved above the $0.2500 resistance level. Buyers were also successful in pushing the price above the 38.2% Fib retracement level of the last decline from the $0.3203 high to $0.2335 low.

However, the upside move was capped by a strong resistance near $0.2820. The price also faced sellers near the 100 hourly simple moving average, which is currently at $0.2780. Moreover, the 50% Fib retracement level of the last decline from the $0.3203 high to $0.2335 low prevented upsides. More importantly, there is a crucial bearish trend line forming in place with resistance at $0.2750 on the hourly chart of the ADA/USD pair. The pair was rejected from the $0.2800 zone, 100 hourly SMA, and the trend line.

The chart indicates that the price is under pressure and it may decline back towards the $0.2500 support. Should buyers fail to keep the price above $0.2500, it may perhaps retest the $0.2330 swing low. On the other hand, if they succeed in clearing $0.2820 and 100 hourly SMA, there can be a sharp upside move towards $0.3200.

Hourly MACD – The MACD for ADA/USD is now back in the bearish zone.

Hourly RSI – The RSI for ADA/USD has moved below the 50 level.

Major Support Level – $0.2500

Major Resistance Level – $0.2820

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