Cardano has entered a consolidation phase just below the $0.6650 zone, holding gains and potentially gearing up for another increase above $0.6500. Following a robust rally that propelled ADA toward the $0.6600 mark, the cryptocurrency entered a downside correction. Despite this, the price remains above $0.580 and the 100-hourly simple moving average.
On the hourly chart of the ADA/USD pair, a key contracting triangle has formed with support at $0.5780, suggesting a possible upward move if the pair clears the $0.6060 resistance zone. In the past few days, Cardano experienced a significant surge, breaking past the $0.40 resistance and outperforming both Bitcoin and Ethereum. It overcame the $0.450 and $0.50 resistance levels, eventually soaring above $0.600. A high was established at $0.6620, after which the price began consolidating gains, experiencing a slight drop below $0.6120.
Even though there was a small decline—dipping beneath the 23.6% Fibonacci retracement level from the $0.4277 swing low to the $0.6620 high—the bulls have remained active above $0.5500. This level also corresponds with the 50% Fibonacci retracement of the same upward move. Cardano’s price is currently trading above $0.580 and the 100-hourly simple moving average. The presence of a contracting triangle on the hourly chart indicates potential resistance near $0.6060, with further resistance expected around $0.6230 and $0.6450.
A decisive move above the $0.6450 resistance could trigger a strong rally, pushing the price towards the $0.6800 region and potentially even higher towards $0.700. Conversely, if ADA fails to break the $0.6060 resistance level, it might start another decline. Immediate support on the downside lies near $0.5780, followed by a more significant support level at $0.550. A breach below this could lead to a test of $0.5180, with additional support near $0.500 where bullish interest might reemerge.
Technical indicators show that the hourly MACD for ADA/USD is losing momentum in the bearish zone, while the hourly RSI is now below the 50 level. Major support levels are identified at $0.5780 and $0.5500, with major resistance at $0.6060 and $0.6450.
