Cardano price has started a downward correction from the $1.325 area. ADA is consolidating and faces obstacles near the $1.20 and $1.240 levels.
- ADA price started to pull back after failing to stay above $1.30.
- The price is trading below $1.20 and the 100 hourly simple moving average.
- A key downtrend line forms with resistance at $1.20 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could begin a further rise if it breaks the $1.240 resistance zone.
Cardano Price Eyes Further Rise
After struggling above $1.30, Cardano began a downward correction. ADA underperformed Bitcoin and Ethereum with a decline below the $1.20 level. The price even climbed below $1,150 before the bulls appeared.
A low formed at $1.1173 before the price began a further rise. There was a move above the $1.140 and $1.1550 resistance levels. The price broke above the 50% Fib retracement level of the downward move from the $1.326 high to $1.117 low.
However, the bears are now active near the $1.25 area. They protected the 61.8% Fibonacci retracement level of the downward move from the $1.326 high to $1.117 low.
Cardano price is now trading below $1.20 and the 100 hourly simple moving average. On the upside, the price may encounter resistance near the $1.20 area. There is also a key downtrend line forming with resistance at $1.20 on the hourly chart of the ADA/USD pair.
The first resistance is near $1.2250. The next key resistance could be $1.2450. If there is a close above the $1.2450 resistance, the price could begin a strong move higher. In the stated case, the price could increase towards the $1.2780 region. Any further gains may require a move towards $1.320.
Another decline of the ADA?
If Cardano price fails to rise above the $1.20 resistance level, it could begin a further decline. Immediate downside support is near the $1.150 level.
The next major 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 lies near the $1.0450 level, where the bulls could emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $1,120 and $1,080.
Major resistance levels – $1.20 and $1.2450.
