Charted: Cardano (ADA) is Facing Hurdles, Why It Could Extend Losses
Cardano’s price is struggling to clear the $1.200 resistance zone. ADA remains at a risk of more losses below the $1.050 and $1.020 support levels in the near term.
- ADA is struggling to recover, but it is still well above the $1.000 level against the US dollar.
- The price is still facing hurdles near $1.200 and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $1.150 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
- The pair could dip further unless there is a clear break above $1.150 and $1.200 in the near term.
Cardano (ADA) Remains At a Risk
After a sharp rally, cardano’s price struggled to extend gains above $1.487. ADA price started a downside correction and traded below a key support near the $1.200 level.
The price even traded below the $1.100 support and settled below the 100 simple moving average (4-hours). A low is formed near $1.036 and the price is currently correcting higher. There was a break above $1.100 and $1.120 resistance levels.
There was a break above the 23.6% Fib retracement level of the downward move from the $1.487 high to $1.036 low. The price even spiked above the $1.150 resistance and the 100 simple moving average (4-hours).
Source: ADAUSD on TradingView.com
However, there was no upside break above the $1.200 resistance. There is also a major bearish trend line forming with resistance near $1.150 on the 4-hours chart of the ADA/USD pair. The pair is now trading well below the 50% Fib retracement level of the downward move from the $1.487 high to $1.036 low.
On the downside, the $1.050 level is a decent support. The main support is now forming near the $1.035 level. A downside break below the $1.035 level could open the doors for a move towards the $1.000 and $0.9500 levels in the near term.
Upsides Capped?
If cardano’s price stays above the $1.050 support, it could make an attempt to clear the trend line resistance at $1.150. If the bulls succeed, the price could rally towards the $1.200 and $1.220 levels.
In the stated case, the price could even climb above the $1.250 level. Any more gains could lead the price towards the $1.450 level.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is struggling to gain momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.
Major Support Levels – $1.050, $1.035 and $1.000.
Major Resistance Levels – $1.150, $1.200 and $1.220.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
