Cardano Price Analysis: ADA/USD Approaching Support

Key Highlights

• ADA price traded above the $0.2200 resistance level before correcting lower against the US Dollar (tethered).
• There was a break below a connecting bullish trend line with support at $0.2300 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
• The pair is currently approaching a major support area near the $0.2180 and $0.2150 levels.

Cardano price is correcting lower against the US Dollar and Bitcoin. ADA/USD must stay above the $0.2150 level to resume its upside move in the near term.

Cardano Price Analysis

There were further upsides above the $0.2000 pivot level in ADA price against the US Dollar. The price traded above the $0.2150 and $0.2200 resistance levels. There was also a break above the $0.2300 level and a high was formed at $0.2336. Later, the price started a downside correction and moved below $0.2300. It also broke the 23.6% Fib retracement level of the last wave from the $0.1962 low to $0.2336 high.

More importantly, there was a break below a connecting bullish trend line with support at $0.2300 on the hourly chart of the ADA/USD pair. The pair broke the $0.2250 support and settled below the 100 hourly simple moving average. On the downside, there is a major support waiting near $0.2150. The 50% Fib retracement level of the last wave from the $0.1962 low to $0.2336 high is also around $0.2160. Therefore, the $0.2150 and $0.2160 support levels hold a lot of importance in the near term.

The chart indicates that the price is struggling, but the $0.2150 support may hold declines. Should there be a downside break below $0.2150, the price may well test $0.2000. On the upside, the price is facing hurdles near the $0.2250, $0.2300 and $0.2330 levels.

Hourly MACD – The MACD for ADA/USD is moving back in the bearish zone.

Hourly RSI – The RSI for ADA/USD has moved below the 50 level and is currently heading south.

Major Support Level – $0.2150

Major Resistance Level – $0.2300