Price Analysis: Cardano (ADA) is Facing Difficulties While Holding Support
Cardano (ADA) price managed to go higher above the $0.1080 and $0.1100 resistance lines against the U.S. dollar. The ADA/USD pair changed hands as high as $0.1128 but did not manage to clear the significant $0.1300 resistance line.
As a result, there was a bearish response below the $0.1100 and $0.1080 support levels. The price even went above the $0.1060 support line and settled just below the 55 simple moving average on the 4-hour chart.
Still, the bulls were able to keep the $0.100 support zone, with a low forming near the $0.0994 level, and the price is, at the moment, recovering higher. There was a break above the $0.1020 resistance line and the 23.6 percent Fibonacci retracement level of the recent dip from the $0.1128 high to $0.0994 low.
Cardano is Having a Hard Time as It Holds Support
Cardano is now facing a steady resistance close to the $0.1055 level. There’s also a robust bearish pattern forming with resistance near $0.1054 on the 4-hours chart. The trend line is near the 50 percent Fibonacci retracement level of the recent dip from the $0.1128 high to the $0.0994 low. An immediate resistance above the trend line is close to $0.1065 and the 55 simple moving average on the 4-hour chart.
A successful close above the pattern line and $0.1065 is required for an increase towards the $0.1250 and $0.1300 resistance levels. Otherwise, there is a risk of a new drop in the following sessions below the $0.1020 line. The primary support is still close to the $0.1000 level, below which the price might start to decline strongly. The next stop for the bears might be somewhere close to the $0.0950 line.
Cardano (ADA) price. [Image Source: TradingView]
The chart shows that ADA price is encountering difficulties near $0.1055, and it is well below the 55 simple moving average on the 4-hour chart. Overall, the ADA price could either revisit the $0.1000 support line or rally above the $0.1055 resistance level.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.