Cardano (ADA) Decline: Short-term Adjustment or Beginning of a Larger Shift?

The price of Cardano has initiated a new upward movement past the $0.750 mark. Currently, ADA is undergoing a correction after peaking at $0.8650, as it tests the support level at $0.7750.

• The price of ADA has commenced a notable rise above the levels of $0.750 and $0.7750.
• Currently, the price remains below $0.80 and the 100-hour simple moving average.
• A bearish break occurred under a previously established bullish trend line, which had support at $0.820 on the hourly chart for the ADA/USD pair.
• The pair may start another upward trend if it surpasses the $0.80 resistance level.

Cardano Price Tests Support Levels

Recently, Cardano experienced a notable increase above the $0.750 threshold, similarly to Bitcoin and Ethereum. ADA successfully crossed the resistance levels of $0.7750 and $0.80.

The price reached the $0.8650 region, with a peak of $0.8634, before it corrected some of these gains. A drop below $0.80 was observed, alongside a breach of the bullish trend line with support at $0.820 on the ADA/USD hourly chart.

The pair has tested the $0.7750 area, forming a low at $0.7742 while currently consolidating beneath the 23.6% Fibonacci retracement level from the recent decline that began at $0.8634 and concluded at $0.7742.

Cardano’s price is presently below $0.80 and the 100-hour simple moving average. Resistance is anticipated near the $0.80 mark, with initial resistance around $0.8180 and a subsequent key level at $0.8450.

If the price closes above the $0.8450 resistance level, it could potentially trigger a significant rally. In that case, the price could ascend toward $0.880, with further gains possibly leading to a move toward $0.90 in the near future.

Potential Further Declines for ADA?

Should Cardano’s price struggle to rise past the $0.80 resistance, another decline could ensue. Immediate support is found at around the $0.7750 level.

The next significant support level is approximately at $0.740. A breach below this level could set the stage for a test of $0.7050, with further support around $0.680, potentially inviting bullish activity.

Technical Indicators

Hourly MACD – The MACD indicator for ADA/USD shows a decrease in bullish momentum.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD has dipped below the 50 mark.

Key Support Levels – $0.7750 and $0.7400.

Key Resistance Levels – $0.8000 and $0.8180.