Cardano price started a downside correction since the $1.325 area and ADA is currently facing resistance near the $1.20 and $1.240 levels.
After failing to sustain above $1.30, ADA started a correction and the price is currently trading below $1.20 and the 100 hourly simple moving average.
There is a key bearish trend line formed with resistance at $1.20 on the hourly chart of the ADA/USD pair.
Price trend:
After struggling above $1.30, Cardano started a downside correction, underperforming Bitcoin and Ethereum and falling below $1.20. The price even dipped below $1.150 before the bulls emerged.
A low was formed at $1.1173 and the price later broke the $1.140 and $1.1550 resistance levels, breaking the 50% Fibonacci retracement level of the downward move from the $1.326 high to $1.117 low.
The bears are currently active near the $1.25 area, protecting the 61.8% Fibonacci retracement level of the downward move from the $1.326 high to $1.117 low.
Cardano price is currently trading below the $1.20 level and the 100 hourly simple moving average. On the upside, it is likely to face resistance near the $1.20 area. There is a key bearish trend line formed with resistance at $1.20 on the hourly chart of the price.
Resistance level analysis:
The first resistance is near the $1.2250 level and the next key resistance is likely to be $1.2450. If there is a close above the $1.2450 resistance, the price could start a strong recovery that can move up to the $1.2780 area. If it continues to rise, it could reach $1.320.
Downside risks:
If the price of Cardano fails to clear the $1.20 resistance, it is likely to decline again. An immediate support on the downside is near the $1.150 level and the next major support is near the $1.120 level.
If it breaks below $1.120, it is likely to test $1.080. The next major support is near the $1.0450 level, where the bulls are likely to emerge.
Technical indicators:
The hourly MACD shows that the MACD for ADA/USD is gaining momentum in the bearish zone.
The hourly RSI shows that the ADA/USD pair is now trading below the 50 level.
The main support levels are $1.120 and $1.080, while the main resistance levels are $1.20 and $1.2450.
