Cardano price has started a modern decline below the USD 0.3550 zone. ADA is consolidating above $0.3400 and may attempt a recovery wave.
- ADA price started moving down below the USD 0.3500 support level.
- The price is trading below $0.3550 and the 100-hour elementary moving average.
- There was a break below a key uptrend line with support at $0.3600 on the hourly chart of ADA/USD (Kraken data source).
- The pair could attempt a recovery wave if it clears the resistance zone at $0.3585.
Cardano price consolidates losses
After testing the resistance at $0.3685, Cardano had difficulty continuing its gains. ADA formed a short-term high and started a modern decline, similar to Bitcoin and Ethereum. There has been a move below the $0.3550 and $0.3500 support levels.
There was a break below the key uptrend line with support at $0.3600 on the hourly chart of the ADA/USD pair. Before the bulls emerged, the price even dropped below $0.3440. The bottom was formed at USD 0.3420 and the price is currently correcting losses. There was a slight move above the $0.3480 level.
The price broke the 23.6% Fib retracement level in a move down from a high of $0.3685 to a low of $0.3420. Cardano price is currently trading below $0.3550 and the 100-hour elementary moving average.
On the other hand, the price may face resistance near the $0.3550 zone or 50% Fib retracement level while moving down from the $0.3685 high to the $0.3420 low. The first resistance is located near USD 0.3585. The next key resistance may be the USD 0.3685 level.
If there is a close above the resistance at $0.3685, the price could begin a powerful rally. In the given case, the price may augment towards the USD 0.3780 region. Further gains may require a move towards USD 0.3950.
Another ADA decline?
If Cardano price fails to break above the $0.3550 resistance level, another decline could begin. Immediate downside support is located near the $0.3480 level.
The next vital support is near the USD 0.3420 level. A downside break below the $0.3420 level could open the door to a test at $0.3250. The next major support is near the $0.3120 level, where bulls may emerge.
Technical indicators
Hourly MACD – MACD for ADA/USD is losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.
Major support levels – USD 0.3450 and USD 0.3420.
Major resistance levels – USD 0.3550 and USD 0.3685.
