Cardano price has started a recent decline below the $1,050 zone. ADA is consolidating and may struggle to start a recent rally above the $1.0250 level.

• ADA price started a recent decline from the $1,150 zone.
• The price is trading below $1.0550 and the 100-hour plain moving average.
• On the hourly chart of the ADA/USD pair, a connecting bearish trend line is forming with resistance at USD 1,040 (data source from Kraken).
• The pair could start another rally if it breaks the resistance zone at $1,050.

Cardano price faces headwinds

After struggling to stay above the $1,150 level, Cardano began a recent decline unlike Bitcoin and Ethereum. ADA fell below the $1.050 and $1.0350 support levels.

Its price even rose below $1.00. The lowest level was formed at USD 0.9615 and the price is currently trying to recover. There was a move above the $0.990 level. The price broke the 23.6% Fib retracement level in a move down from a high of $1.088 to a low of $0.9615.

Cardano price is currently trading below $1,050 and the 100-hour plain moving average. On the other hand, the price may face resistance near the $1.0250 zone. It is near the 50% Fib retracement level, which is a downward move from the high of $1.088 to the low of $0.9615.

The first resistance is near $1.050. A converging bearish trend line is also forming on the hourly chart of the ADA/USD pair with resistance at $1,040. The next key resistance could be $1.0880. If there is a close above the resistance at $1.0880, the price could begin a forceful rally.

In the given case, the price may boost towards the USD 1,120 region. Further gains could result in a move towards $1.1520 in the near future.

Another ADA decline?

If Cardano price fails to break above the resistance level at $1,050, another decline could begin. Immediate downside support is located near the $0.980 level.

The next essential support is near the USD 0.9650 level. A downside break below the $0.9650 level could open the door to a test at $0.9200. The next major support is near the $0.880 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 0.980 and USD 0.9650.

Major resistance levels – $1.0250 and $1.0500.