Cardano (ADA) recently experienced a correction in gains after hitting the resistance zone at $0.642. This correction has led to some bearish signs in the price action, particularly below the $0.600 level. However, ADA is still trading above the $0.5550 support zone and the 100 simple moving average on a 4-hour chart.
There was a noticeable break below a key bullish trend line with support at $0.610 on the 4-hour chart of the ADA/USD pair. Following this break, the price declined below the 23.6% Fib retracement level of the upward move from the $0.4718 swing low to the $0.6419 high. As a result, ADA is currently trading below $0.600 and the 100 simple moving average on a 4-hour chart.
On the upside, immediate resistance for ADA is near the $0.600 zone with the first key resistance at $0.612 and the next at $0.620. If the price manages to close above $0.620, there is a possibility of starting a strong rally towards the $0.642 region and potentially even reaching $0.680. However, failure to climb above the $0.600 resistance level could lead to further downside movement.
Immediate support on the downside is near the $0.570 level, followed by the next major support at $0.5550. In case of a downside break below $0.5500, it may open doors for a test of $0.5120, with the next major support level at $0.500.
When looking at technical indicators, the 4-hour MACD for ADA/USD is showing a loss of momentum in the bullish zone, while the 4-hour RSI is now below the 50 level. These indicators suggest a potential shift in market sentiment and could influence the price movement of Cardano in the coming days.
The current state of Cardano’s price action indicates a correction phase following a recent attempt to break above the resistance at $0.642. While there are bearish signs below the $0.600 level, ADA is still holding above the $0.5550 support zone. However, failure to break above key resistance levels could lead to further downside movement towards lower support levels. Traders and investors are advised to conduct their own research and exercise caution when making investment decisions in the cryptocurrency market.
Leave a Reply