Cardano Price Technical Analysis – Can ADA/USD Correct Higher?

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Key Highlights

  • ADA price settled below the $0.1600 level and it is currently in a bearish zone against the US Dollar (tethered).
  • There is a major contracting triangle forming with resistance at $0.1540 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
  • The pair must break the $0.1500 and $0.1550 resistance levels to start an upward move.

Cardano price is struggling to move higher against the US Dollar and Bitcoin. ADA/USD has to settle back above $0.1550 to start a fresh recovery in the near term.

Cardano Price Upside Hurdle

There were further losses from the $0.1800 swing high in ADA price against the US Dollar. The price declined below the $0.1500 and $0.1400 levels to move deep into the red zone. It traded towards the $0.1300 level before starting an upside correction. An intermediate swing low was formed at $0.1378 from where the current upside wave was started.

It moved above the 38.2% Fib retracement level of the last downside move from the $0.1589 high to $0.1378 low. However, the upside move was protected by the $0.1500 level. Moreover, the 61.8% Fib retracement level of the last downside move from the $0.1589 high to $0.1378 low acted as a resistance. At the moment, there is a major contracting triangle forming with resistance at $0.1540 on the hourly chart of the ADA/USD pair. The pair has to move above the $0.1540 and $0.1550 resistance levels to recover further.

However, a proper close above the $0.1600 level would be great to trigger an upside wave. If the price fails to move above the $0.1550 level, there is a chance of a downside reaction back towards $0.1400. Below $0.1400, there is a risk of ADA trading to a new low.

Hourly MACD – The MACD for ADA/USD is struggling to gain momentum in the bullish zone.

Hourly RSI – The RSI for ADA/USD is moving lower towards the 35 level.

Major Support Level – $0.1400

Major Resistance Level – $0.1550

 

Charts courtesy – Trading View



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