Cardano price has entered a consolidation phase below the $0.6650 zone. ADA maintains gains and may aim for a fresh rally above $0.6500.
- ADA price has started a downward correction after rising strongly towards USD 0.6600.
- The price is holding above $0.580 and the 100-hour uncomplicated moving average.
- A key contracting triangle is forming on the hourly chart of the ADA/USD pair with support at USD 0.5780 (data source Kraken).
- The pair could start another rally if it clears the resistance zone at $0.6060.
Cardano Price Consolidates Gains
Over the past few days, Cardano has seen a significant rally above the resistance at $0.40. ADA has overtaken Bitcoin and Ethereum. There has been a move above the $0.450 and $0.50 resistance levels.
It even broke the USD 0.600 level. The maximum was formed at USD 0.6620 and the price is currently consolidating its gains. There was a slight decline below the $0.6120 level. The price fell below the 23.6% Fib retracement level resulting from the upward move from a low of $0.4277 to a high of $0.6620.
However, bulls are lively above $0.5500 and the 50% Fib retracement level in an upward move from the low of $0.4277 to the high of $0.6620. Cardano price is currently trading above $0.580 and the 100-hour uncomplicated moving average.
A key contracting triangle is also forming on the hourly chart of the ADA/USD pair with support at USD 0.5780. On the other hand, the price may face resistance near the USD 0.6060 zone. The first resistance is located near USD 0.6230. The next key resistance could be the USD 0.6450 level.
If there is a close above the resistance at $0.6450, the price could begin a mighty rally. In the given case, the price may augment towards the USD 0.6800 region. Further gains may require a move towards $0.700.
More ADA losses?
If Cardano price fails to rise above the $0.6060 resistance level, another decline could begin. Immediate downside support is located near the $0.5780 level.
The next critical support is near the $0.550 level. A downside break below the $0.550 level could open the door to a test at $0.5180. The next major support is near the $0.500 level, where bulls may emerge.
Technical indicators
Hourly MACD – MACD for ADA/USD is losing momentum in the bear zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.
Major support levels – USD 0.5780 and USD 0.5500.
Major resistance levels – USD 0.6060 and USD 0.6450.
