Cardano price has started a downward correction below the $1.00 area. ADA is consolidating and faces obstacles near the $0.920 and $0.950 levels.
- ADA price started a decline below the $1.00 support zone.
- The price is trading below $0.950 and the 100 hourly simple moving average.
- There is a connected downtrend line with resistance at $0.92 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could begin a further rise if it breaks the $0.950 resistance zone.
Cardano price begins further decline
After struggling to break above the $1.00 resistance zone, Cardano began a further decline, like Bitcoin and Ethereum. ADA fell below the $0.9650 and $0.950 support levels.
The recent high stood at $0.9495 before the price declined. There was a move below the $0.920 support level. The price fell below the 50% Fibonacci retracement level of the upward move from the $0.8628 low to $0.9495 high.
Cardano price is now trading below $0.925 and the 100 hourly simple moving average. On the upside, the price may encounter resistance near the $0.920 area. There is also a downtrend line forming with resistance at $0.92 on the hourly chart of the ADA/USD pair.
The first resistance is near $0.9350. The next key resistance could be $0.950. If there is a close above the $0.950 resistance, the price could begin a strong move higher. In the stated case, the price could increase towards the region of $1.00. Any further gains may require a move towards $1,050 in the near term.
More losses in ADA?
If Cardano price fails to rise above the $0.920 resistance level, it could begin a further decline. Immediate support on the downside is near the $0.8950 level or the 61.8% Fibonacci retracement level of the upward move from the $0.8628 low to $0.9495 high.
The next major support is near the $0.865 level. A downside break below the $0.8650 level could open the door to a test of $0.820. The next major support is near the $0.8050 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 – $0.8950 and $0.8650.
Major resistance levels – $0.920 and $0.950.
