Cardano Price Technical Analysis – ADA/USD Approaching Key Support

Key Highlights

• ADA price traded as high as $0.3883 before starting a downside correction against the US Dollar (tethered).
• There is a significant bullish trend line in place with support at $0.3550 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
• The pair is approaching the $0.3550-0.3500 support area, which is likely to prevent declines.

Cardano price is correcting lower against the US Dollar and Bitcoin. ADA/USD is heading towards a crucial buy zone above $0.3500, which is a strong support.

Cardano Price Support

There was a decent upside move in ADA price above the $0.3700 level against the US Dollar. The price accelerated gains and traded as high as $0.3883. Later, a downside correction was initiated and the price declined below $0.3800. It also moved below the 23.6% Fib retracement level of the last wave from the $0.3196 low to $0.3883 high. However, there are many supports on the downside, starting with $0.3600.

More importantly, there is a significant bullish trend line in place with support at $0.3550 on the hourly chart of the ADA/USD pair. The trend line support and $0.3600 is close to the 100 hourly simple moving average. Additionally, the 50% Fib retracement level of the last wave from the $0.3196 low to $0.3883 high is positioned around the $0.3540 level. Therefore, it seems like the current correction may find a strong buying interest near the $0.3500-0.3550 levels in the near term. A downside break below $0.3500 could push the price back in a bearish zone in the short term.

The chart suggests that the price is well supported near $0.3550. There are high chances of it bouncing back above the $0.3700 level. On the upside, the $0.3800 and $0.3840 levels are important resistances, followed by $0.4000.

Hourly MACD – The MACD for ADA/USD is slightly negative in the bearish zone.

Hourly RSI – The RSI for ADA/USD is currently well below the 50 level.

Major Support Level – $0.3550

Major Resistance Level – $0.3840

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