Cardano price started a downward correction from the $1,325 zone. ADA is consolidating and facing headwinds near the $1.20 and $1.240 levels.

• The price of ADA began to decline after failing to stay above $1.30.
• The price is trading below $1.20 and the 100-hour uncomplicated moving average.
• A key bearish trend line is forming on the hourly chart of the ADA/USD pair with resistance at $1.20 (data source Kraken).
• The pair could start another rally if it breaks the resistance zone at $1,240.

Cardano Price Eyes Fresh Growth

After struggling above $1.30, Cardano began a downward correction. ADA underperformed Bitcoin and Ethereum, falling below the $1.20 level. Before the bulls emerged, the price even rose below $1,150.

The low formed at $1.1173 before the price began a fresh rally. There was a move above the $1.140 and $1.1550 resistance levels. The price broke above the 50% Fib retracement level in a move down from a high of $1,326 to a low of $1,117.

However, bears are now vigorous near the $1.25 zone. They secured the 61.8% Fib retracement level in a move down from a high at $1,326 to a low at $1,117.

Cardano price is currently trading below $1.20 and the 100-hour uncomplicated moving average. On the other hand, the price may face resistance near the $1.20 zone. A key bearish trend line is also forming on the hourly chart of the ADA/USD pair with resistance at $1.20.

The first resistance is located near $1.2250. The next key resistance could be $1.2450. If there is a close above the resistance at $1.2450, the price could begin a robust rally. In the given case, the price may augment towards the USD 1.2780 region. Further gains may require a move towards USD 1,320.

Another ADA decline?

If Cardano price fails to break above the resistance level at $1.20, another decline could begin. Immediate downside support is located near the $1,150 level.

The next critical support is near the $1.120 level. A downside break below the $1,120 level could open the door to a test of $1,080. The next major support is near the $1.0450 level, where bulls may emerge.

Technical indicators

Hourly MACD – MACD for ADA/USD is gaining momentum in a bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.

Major support levels – $1,120 and $1,080.

Major resistance levels – $1.20 and $1.2450.