The price of Cardano, or ADA, is consolidating below a key resistance level as the cryptocurrency market recovers. The token has struggled to break through the level after a recent decline. The current price action is leading some analysts to believe that momentum is building for a potential breakout.
Cardano Price Sees Potential for Increase
Cardano encountered sellers near $0.9650 and initiated a downward correction, similar to Bitcoin and Ethereum, following a consistent rise. The ADA price fell below the $0.920 and $0.900 support levels.
The price was even driven below $0.880 by the bears. A low was established at $0.830, and the price consolidates its losses. A minor increase was observed above the 23.6% Fib retracement level of the recent decline from the $0.9641 swing high to the $0.830 low.
The price of Cardano is currently trading below the 100-hourly simple moving average and $0.90. On the hourly chart of the ADA/USD pair, a key contracting triangle is also forming, with resistance at $0.8720.
Resistance may be encountered by the price in the vicinity of $0.8720. The initial resistance is located in the area of $0.880. The subsequent significant resistance level may be $0.8980 or the 50% Fib retracement level of the recent decline from the $0.9641 swing high to the $0.830 low.
The price may initiate a robust rally if it closes above the $0.8980 resistance. If the scenario is as indicated, the price may increase toward the $0.9320 region. A move toward $0.9650 may be necessary in the near term if any additional gains are achieved.
Another Decline In ADA?
Cardano’s price may initiate an additional decline if it cannot surpass the $0.8980 resistance level. The $0.850 level serves as immediate support on the downside.
The subsequent significant support is located in the vicinity of $0.830. A test of $0.8120 could be initiated if the price breaks below the $0.0.830 level. The bulls may emerge at the $0.80 level, the next significant support.
Technical Indicators
Hourly MACD: The MACD for ADA/USD is deteriorating in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.
Major Support Levels: $0.8500 and $0.8300.
Major Resistance Levels: $0.8800 and $0.8980.