Recently, Cardano (ADA) has encountered challenges in maintaining its market position, particularly falling below the significant $1.00 mark. Currently, ADA is experiencing a consolidation phase, struggling with resistance levels near $0.920 and $0.950.
The downward movement began when Cardano slipped beneath the $1.00 support area. As it stands, the price trades below $0.950 along with the 100-hourly simple moving average. A bearish trend line is forming, indicating resistance at $0.92 on the hourly chart for the ADA/USD pair.
Should the price successfully navigate above $0.950, there is potential for an upward trend to materialize. However, as it currently looks, Cardano is continuing its fresh decline.
Following an attempt to break through the $1.00 resistance zone, Cardano’s price dipped further, mirroring similar declines observed in both Bitcoin and Ethereum. The recent high peaked at $0.9495 before plummeting, leading to a breach of the $0.920 support level and falling below the 50% Fib retracement level from the earlier upswing.
At present, Cardano trades below $0.925 and the 100-hourly moving average. Resistance seems to build around the $0.920 zone, with the potential for further pressure from the bearish trend line in play. The initial resistance level sits around $0.9350, followed by the critical barrier at $0.950. Should a close occur above $0.950, there’s optimism for a rally that could see prices revisiting the $1.00 area, with possibilities of pushing towards $1.050 shortly thereafter.
So, what lies ahead for ADA? If Cardano remains unsuccessful in breaking through the $0.920 resistance, another round of declines could ensue. Immediate support is likely at the $0.8950 threshold—right at the 61.8% Fib retracement level of the previous upward movement. The subsequent major support level hovers around $0.865. Should this level falter, a deeper drop to test $0.820 might be on the horizon, followed by a potential bounce at $0.8050, where buyers might re-enter.
Looking at the technical indicators, the MACD suggests that momentum is building in the bearish zone, while the RSI indicates that it is now below the 50 mark, reflecting a challenging environment for ADA.
Major support levels stand at $0.8950 and $0.8650, while major resistance levels are identified at $0.920 and $0.950.
The sentiment is cautious as investors watch closely to see if Cardano can hold its ground or face further drops in these turbulent times.