Cardano (ADA) Consolidates Below Resistance – Is Momentum Building Up?

[Redator]

Cardano price started a fresh decline from the $0.9650 zone. ADA is now consolidating and facing hurdles near the $0.880 and $0.8980 levels.

• ADA price started a fresh decline below the $0.920 support zone.
• The price is trading below $0.90 and the 100-hourly simple moving average.
• There is a key contracting triangle forming with resistance at $0.8720 on the hourly chart of the ADA/USD pair (data source from Kraken).
• The pair could start a fresh increase if it clears the $0.880 resistance zone.

Cardano Price Eyes Upside Break

After a steady increase, Cardano faced sellers near $0.9650 and started a downside correction, like Bitcoin and Ethereum. ADA dipped below the $0.920 and $0.900 support levels.

The bears even pushed the price below $0.880. A low was formed at $0.830 and the price is now consolidating losses. There was a minor increase above the 23.6% Fib retracement level of the recent decline from the $0.9641 swing high to the $0.830 low.

Cardano price is now trading below $0.90 and the 100-hourly simple moving average. There is also a key contracting triangle forming with resistance at $0.8720 on the hourly chart of the ADA/USD pair.

On the upside, the price might face resistance near the $0.8720 zone. The first resistance is near $0.880. The next key resistance might be $0.8980 or the 50% Fib retracement level of the recent decline from the $0.9641 swing high to the $0.830 low.

If there is a close above the $0.8980 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.9320 region. Any more gains might call for a move toward $0.9650 in the near term.

Another Decline In ADA?

If Cardano’s price fails to climb above the $0.8980 resistance level, it could start another decline. Immediate support on the downside is near the $0.850 level.

The next major support is near the $0.830 level. A downside break below the $0.0.830 level could open the doors for a test of $0.8120. The next major support is near the $0.80 level where the bulls might emerge.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.

Major Support Levels – $0.8500 and $0.8300.

Major Resistance Levels – $0.8800 and $0.8980.