Cardano price has started a modern decline below the $0.3565 zone. ADA is consolidating above USD 0.3420 and may attempt a recovery wave.
- ADA price started moving down below the USD 0.3520 support level.
- The price is trending below $0.3500 and the 100-hour plain moving average.
- There has been a break above the key bearish trend line with resistance at $0.3460 on the hourly chart of ADA/USD (data source Kraken).
- The pair could attempt a recovery wave if it clears the resistance zone at $0.3520.
Cardano price consolidates losses
After testing the resistance at $0.3700, Cardano had difficulty continuing its gains. ADA formed a short-term high and started a modern decline, unlike Bitcoin and Ethereum. There has been a move below the $0.3550 and $0.3500 support levels.
Before the bulls emerged, the price even dropped below $0.3450. The bottom was formed at USD 0.3394 and the price is currently consolidating losses. There was a slight move above the $0.3420 level. The price broke the 23.6% Fib retracement level in a move down from a high of $0.3705 to a low of $0.3394.
Additionally, there was a break above the key bearish trend line with resistance at USD 0.3460 on the hourly chart of the ADA/USD pair. Cardano price is currently trading below $0.350 and the 100-hour plain moving average.
On the other hand, the price may face resistance near the USD 0.3515 zone. The first resistance is located near $0.3550 or the 50% Fib retracement level as it moves down from a high at $0.3705 to a low at $0.3394. The next key resistance may be the USD 0.3620 level.
If there is a close above the resistance at $0.3620, the price could begin a robust rally. In the given case, the price may enhance towards the USD 0.3700 region. Further gains may require a move towards USD 0.3880.
More ADA flaws?
If Cardano price fails to break above the $0.350 resistance level, another decline could begin. Immediate downside support is located near the $0.3420 level.
The next essential support is located near the USD 0.3400 level. A downside break below the $0.3400 level could open the door to a test at $0.3220. The next major support is located near the $0.3100 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 0.3400 and USD 0.3220.
Major resistance levels – USD 0.3500 and USD 0.3550.
