- ADA price declined recently and traded near a key support at $0.1600 against the US Dollar (tethered).
- There is a major bearish trend line in place with resistance at $0.1720 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair remains at a risk of more declines below the $0.1600 support in the near term.
Cardano price declined recently against the US Dollar and Bitcoin. ADA/USD must stay above the $0.1600 support to avoid an extended decline to $0.1500.
Cardano Price Analysis
There were a couple of attempts by cardano price to clear the $0.1780-0.1800 resistance against the US Dollar. The ADA/USD pair failed to gain traction and formed swing highs near $0.1800, $0.1780 and $0.1750. It moved down and broke a short-term support at $0.1700. There was even a close below the $0.1680 level and the 100 hourly simple moving average.
However, the downside move stalled near the $0.1600 support. The price is currently consolidating above the $0.1600 support with a few bearish signs. On the upside, an initial resistance is near the 50% Fib retracement level of the last decline from the $0.1755 high to $0.1601 low. Above this, there is a major bearish trend line in place with resistance at $0.1720 on the hourly chart of the ADA/USD pair. The trend line resistance is close to the 76.4% Fib retracement level of the last decline from the $0.1755 high to $0.1601 low. Moreover, the 100 hourly simple moving average is also near $0.1710.
The chart indicates that the price may correct higher towards the $0.1700 and $0.1720 resistance levels. However, a break above $0.1720 resistance won’t be easy. On the downside, a break below the $0.1600 support may perhaps push the price further lower towards the $0.1500 level.
Hourly MACD – The MACD for ADA/USD is currently reducing its bearish slope.
Hourly RSI – The RSI for ADA/USD is moving lower towards the 30 level.
Major Support Level – $0.1600
Major Resistance Level – $0.1720
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Author: Aayush Jindal