Cardano (ADA) has been experiencing a correction in price after facing resistance at the $0.642 mark. The latest trend suggests that the price could potentially initiate a new rally if it manages to sustain above the $0.5550 support level. As of the current scenario, ADA’s price is exhibiting some bearish indications below the $0.600 threshold. However, it is noteworthy that the price is still trading above $0.5550 as well as the 100 simple moving average over a span of 4 hours. There was a notable breach underneath a crucial bullish trend line that had support at $0.610 on the ADA/USD pair’s 4-hour chart sourced from Kraken. Given the circumstances, if the bulls manage to maintain their momentum above the $0.570 support, the pair might make a fresh attempt at an upward movement.
Following a consolidation above the $0.520 mark, Cardano witnessed a fresh surge in price. ADA’s price successfully surpassed both the $0.555 and $0.565 resistance levels, propelling it into a positive zone similar to that of prominent cryptocurrencies like Bitcoin and Ethereum. The bulls exhibited strength by pushing the ADA/USD pair above the $0.600 resistance area. However, the bears intervened near the $0.6420 resistance barrier, resulting in the formation of a peak around $0.6419 and consequent initiation of a downside correction. This adjustment included a drop underneath the $0.600 level, in addition to a break beneath the previously mentioned key bullish trend line at $0.610 on the 4-hour chart of ADA/USD pair.
Despite the correction in price, there is still potential for an uptrend in ADA’s price. The immediate resistance stands near the $0.600 level, followed by another resistance at $0.612 and a significant one at $0.620. A successful breach past the $0.620 resistance could ignite a strong rally, possibly leading to an ascent towards the $0.642 region, with further gains possibly pushing the price towards $0.680. Conversely, failure to surpass the $0.600 resistance may result in a downtrend. Immediate support sits at the $0.570 level, with the next crucial support pegged at $0.5550. The downside could deepen with a breach below the $0.5500 mark, potentially opening the doors for a test at $0.5120. Another key support level hovers around $0.500.
Looking at the technical indicators, the 4-hour MACD for ADA/USD is witnessing a slowdown in its bullish momentum. Meanwhile, the 4-hour RSI (Relative Strength Index) has dipped below the 50 level, indicating a bearish sentiment.
Cardano’s price presents a scenario where a potential rally is on the horizon if certain key levels are maintained. However, a failure to breach resistance could result in a prolonged correction in price. It is essential for investors to conduct thorough research and exercise caution before making any investment decisions, as trading always carries inherent risks.