Cardano (ADA) Uptrend Faces Hurdles: Will Bulls Break the Barrier?

Cardano price started a downward correction from the $1.1780 zone. ADA is consolidating and facing headwinds near the $1,180 and $1,200 levels.

ADA price started a decent rally from the support zone at $0.910.
The price is holding above $1,050 and the 100-hour elementary moving average.
A major bearish trend line is forming on the hourly chart of the ADA/USD pair with resistance at $1,160 (data source from Kraken).
The pair could start another rally if it breaks the resistance zone at $1,180.

Cardano Price Eyes Breakout Up

After creating a base above the $1.00 level, Cardano began a novel rally, just like Bitcoin and Ethereum. ADA was able to climb above the $1,050 and $1,120 resistance levels.

However, bears were dynamic below the $1.20 level. The maximum was formed at USD 1.1781 and the price is currently consolidating its gains. There was a slight decline below the $1.120 level. The price fell below the 23.6% Fib retracement level resulting from the upward move from a low of $0.910 to a high of $1.1781.

Cardano price is currently trading above $1,050 and the 100-hour elementary moving average. On the other hand, the price may face resistance near the $1,150 zone. A major bearish trend line is also forming on the hourly chart of the ADA/USD pair with resistance at $1,160.

The first resistance is near $1.180. The next key resistance could be $1.20. If there is a close above the resistance at $1.2, the price could begin a forceful rally. In the given case, the price may boost towards the USD 1.2280 region. Further gains may require a move towards $1,250.

Another ADA decline?

If Cardano price fails to break above the resistance level at $1,180, another decline could begin. Immediate downside support is located near the $1.10750 level.

The next major support is located near the $1.050 level or the 50% Fib retracement level, which is a sign of an upward move from a low of $0.910 to a high of $1.1781. A downside break below the $1.050 level could open the door to a test of the $1.00 level. The next major support is near the $0.920 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 – $1,070 and $1,050.

Major resistance levels – $1,160 and $1,180.