Cardano price started a fresh decline below the $0.3550 area. ADA is consolidating above $0.3400 and it could attempt a rebound.
ADA price started a decline below the $0.3500 support level.
The price is trading below $0.3520 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance at $0.3460 on the hourly chart of the ADA/USD pair (data source: Kraken).
If the pair sustains below the $0.3520 resistance, it is likely to continue its decline.
Cardano Price Consolidates Losses
Cardano struggled to continue higher after testing the $0.3680 resistance. ADA formed a short-term top and started a fresh decline like bitcoin and Ethereum. It broke below the $0.3550 and $0.3500 support levels.
The price even declined below $0.3450 before the bulls emerged. A low was formed at $0.3409 and the price is currently consolidating losses. The price slightly broke above the $0.3450 level. The price tested the 23.6% Fibonacci retracement level of the downward move from the $0.3681 high to $0.3409 low.
Cardano price is currently trading below $0.3520 and the 100 hourly simple moving average. On the upside, the price is likely to face resistance near the $0.3460 area. There is also a key bearish trend line forming with resistance at $0.3460 on the hourly chart of the ADA/USD pair.
Source: ADAUSD on TradingView.com
The first resistance is near the $0.3520 level, which is the 50% Fibonacci retracement level of the downward move from the $0.3681 high to $0.3409 low. The next key resistance could be $0.3550. If there is a close above the $0.3550 resistance, the price could start a strong recovery. In such a case, the price could move up to the $0.3680 area. If it rises further, the price could drop to $0.400.
Are there more downsides to the ADA?
If the Cardano price fails to clear the $0.3550 resistance, it is likely to decline again. An immediate support on the downside is near the $0.3420 level.
The next major support is near the $0.3400 level. A break below $0.3400 could open the doors for a test of $0.3250. The next major support is near the $0.3120 level, where the bulls are likely to emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.3400 and $0.3350.
Major Resistance Levels – $0.3460 and $0.3550.