- ADA price rallied above the $0.2000 and $0.2200 resistance levels against the US Dollar.
- The price is now correcting lower below $0.2100, but it is above the 55 simple moving average (4-hours).
- There is a major bullish trend line forming with support near $0.1900 on the 4-hours chart (data feed via Kraken).
- The price is likely to remain well supported on the downside near the $0.1900 zone.
Cardano price is slowly moving lower from well above $0.2200 against the US Dollar, similar to bitcoin. ADA price must stay above $0.1900 to start a fresh increase in the near term.
Cardano Price Analysis
Cardano price started a strong surge after it settled above the $0.1700 resistance against the US Dollar. The ADA/USD pair broke the $0.2000 resistance level and settled above the 55 simple moving average (4-hours).
It opened the doors for more upsides above $0.2100 and $0.2200. The price traded as high as $0.2423 before starting a downside correction. There was a break below the $0.2300 and $0.2200 levels. The price broke the 23.6% Fib retracement level of the recent rally from the $0.1501 swing low to $0.2423 high.
There was a strong spike towards the $0.1950 support level. The price even tested the 50% Fib retracement level of the recent rally from the $0.1501 swing low to $0.2423 high. More importantly, there is a major bullish trend line forming with support near $0.1900 on the 4-hours chart.
On the upside, the price is facing hurdles near the $0.2200 and $0.2220 levels. A close above the $0.2220 level may possibly open the doors for a larger increase. In the stated case, the price is likely to continue higher towards the $0.2400 and $0.2500 levels.
Conversely, the price could correct again and test $0.1950. The next major support on the downside is near the $0.1850 level and the 55 simple moving average (4-hours), where the bulls are likely to appear.
The chart indicates that ADA price is correcting lower below $0.2100, but it is above the 55 simple moving average (4-hours). Overall, the price is likely to start a fresh increase as long as it is above the $0.1850 level.
4 hours MACD – The MACD for ADA/USD is losing pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is currently declining towards the 55 level.
Key Support Levels – $0.1950 and $0.1850.
Key Resistance Levels – $0.2220 and $0.2400.