Cardano (ADA) corrected its gains and tested the support zone at $0.4520. ADA needs to stay above the $0.450 support to start a novel upward move.

• ADA price is trying to gain bullish momentum above the $0.4750 zone.
• The price is trading below $0.460 and the 100-hour uncomplicated moving average.
• ADA/USD has broken above the converging bearish trend line with resistance at $0.4570 on the ADA/USD hourly chart (Kraken Data Source).
• The pair may gain bullish momentum if it closes above $0.4620.

Cardano price testing support

Over the past few sessions, Cardano has started moving lower after failing to clear the resistance at $0.4750. ADA fell below the $0.4620 support and tested key supports at $0.4520 such as Bitcoin and Ethereum.

The bottom was formed at USD 0.4516 and the price is currently consolidating losses. There was a slight wave of recovery above the $0.4550 zone. On the hourly chart, ADA/USD has broken above the converging bearish trend line with resistance at $0.4570. The pair tested the 23.6% Fib retracement level during the recent decline from a high of $0.4743 to a low of $0.4516.

Cardano is currently trading below $0.4620 and the 100-hour uncomplicated moving average. On the other hand, immediate resistance is located near the $0.4960 zone. The first resistance is located near $0.4620, which is the 50% Fib retracement level during the recent decline from a high of $0.4743 to a low of $0.4516.

The next key resistance could be the USD 0.4750 level. If there is a close above the resistance at $0.4750, the price could begin a forceful rally. In the given case, the price may escalate towards the USD 0.50 region. Any further gains may require a move towards $0.5250.

More ADA losses?

If Cardano price fails to break above the $0.4620 resistance level, it may continue to decline. Immediate downside support is located near the $0.4520 level.

The next significant support is near the USD 0.4460 level. A downside break below the $0.4460 level could open the door to a test at $0.4320. The next significant support is near the USD 0.420 level.

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 – $0.4520, $0.4460 and $0.4320.

Major resistance levels – USD 0.4620 and USD 0.4750.