Cardano's price started a consolidation phase below the $0.6650 region. ADA is maintaining its upward trend and may target a new increase above $0.6500.
ADA price started a downward correction after a strong rise to $0.6600.
The price is currently above $0.5800 and the 100-hour simple moving average.
On the hourly chart for ADA/USD, a key contracting triangle has formed, with support at $0.5780 (data from Kraken).
If the currency pair breaks the resistance area at $0.6060, it may start to rise again.
Cardano price consolidates gains
In the past few days, Cardano has surged significantly, breaking the resistance level of $0.40. ADA has outperformed Bitcoin and Ethereum. It broke through the resistance levels of $0.450 and $0.50.
It even broke the $0.600 level. The high was formed at $0.6620, and the current price is consolidating the gains. The price slightly dropped below $0.6120. The price fell below the 23.6% Fibonacci retracement level of the upward trend from the swing low of $0.4277 to the high of $0.6620.
However, bulls are active above $0.5500 and above the 50% Fibonacci retracement level from the swing low of $0.4277 to the high of $0.6620. Cardano's price is currently trading above $0.5800 and the 100-hour simple moving average.
On the hourly chart for ADA/USD, a key contracting triangle has also formed, with support at $0.5780. On the upside, the price may face resistance near the $0.6060 area. The first resistance level is around $0.6230. The next key resistance level may be $0.6450.
If the closing price is above the resistance level of $0.6450, the price may start to rebound strongly. In this case, the price could rise to the $0.6800 region. If it rises further, it may drop to $0.700.
Is ADA suffering heavy losses?
If Cardano's price fails to break the resistance level of $0.6060, it may drop again. The direct support level on the downside is near $0.5780.
The next major support level is around $0.5500. A drop below $0.5500 may open the door to test $0.5180. The next major support level is around $0.5000, where bulls may appear.
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.
Main support levels - $0.5780 and $0.5500.
Main resistance levels - $0.6060 and $0.6450.