Market Wrap – Cardano (ADA) Price Analysis
Cardano (ADA) price is trying to clear $0.1250 against the U.S. Dollar, similar to Bitcoin close to $12,000. ADA price could only rally once it passes the $0.1300 line if it gets rid of the $0.1250 resistance.
Cardano (ADA) – Price Analysis
In the last few days, there was a continual decline in Cardano price below the $0.1350 support in comparison to the U.S. Dollar. The ADA/USD couple even traded below the $0.1300 support line and the 55 simple moving average on the 4-hours chart.
The price tried the $0.1200 support zone, and a low took shape near $0.1182; just a while ago, there was an upside correction from the mentioned low level. There was a break above the $0.1220 resistance line, and also a spike above the 23.6 percent Fibonacci retracement level of the dropping move from the $0.1451 swing high to $0.1182 swing low.
In addition, there was a break above a connecting bearish trend line with resistance close to $0.1245 on the 4-hours chart. The price is now swinging between the $0.1250 and $0.1260 levels.
What to Expect Next
If Cardano price manages to pass the $0.1250 resistance, the next major struggle is close to the $0.1300 line and the 55 simple moving average on the 4-hours chart. The 50 percent Fibonacci retracement level of the downward pattern from the $0.1451 swing high to $0.1182 swing low is also close to the $0.1310 line.
A fruitful close above the $0.1300 level might birth some new opportunities for a larger rally. If this is the case, the price could keep rising towards the $0.1420 and $0.1450 resistance level.
On the other hand, there is a risk of a dramatic breakdown below the $0.1200 and $0.1185 support lines. The next major support on the downside could be close to the $0.1620 level.
The chart above shows that ADA price is definitely struggling to recover above the $0.1250 and the 55 simple moving average on the 4-hours illustration. In general, the price could either rally above the $0.1250 resistance level or might drop below the $0.1200 support line.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.