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Cardano (ADA) is attempting a recovery wave from the $0.4650 area. ADA could begin a new rally if there is a close above the $0.550 resistance.
- ADA price is increasing from the $0.4650 area.
- The price is trading below $0.570 and the 100 simple moving average (4-hours).
- A key downtrend line is forming with resistance near $0.545 on the 4-hour chart of ADA/USD (data source from Kraken).
- The pair could accelerate higher if there is a clear move above $0.545 and $0.550.
Cardano price attempts another increase
After a strong rally, Cardano faced sellers near the $0.675 area. ADA started a fresh decline below the $0.620 and $0.600 support levels, unlike Bitcoin and Ethereum.
There was a decline below the $0.550 support and the 100 simple moving average (4-hours). Finally, the price found support near the $0.4650 area. The price is now attempting a further rise above the $0.500 resistance zone. The price tested the 23.3% Fibonacci retracement level of the downward move from the $0.6768 high to $0.4650 low.
ADA is now trading below $0.570 and the 100 simple moving average (4-hours). There is also a key downtrend line forming with resistance near $0.545 on the 4-hour chart of the ADA/USD pair.
On the upside, immediate resistance lies near the $0.532 area. The first resistance is near $0.545 and $0.550. The next key resistance could be $0.570 or the 50% Fibonacci retracement level of the downward move from the $0.6768 high to $0.4650 low.
Source: ADAUSD on TradingView.com
If there is a close above the $0.570 resistance, the price could begin a strong move higher. In the stated case, the price could increase towards the $0.620 region. Any further gains may require a move towards $0.650.
Another decline of the ADA?
If Cardano price fails to rise above the $0.545 resistance level, it could begin a further decline. Immediate support on the downside is near the $0.500 level.
The next major support is near the $0.465 level. A downward break below the $0.465 level could open the door to a test of $0.432. The next major support is near the $0.420 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.500, $0.465 and $0.432.
Major resistance levels – $0.532, $0.545 and $0.570.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.
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