Cardano’s price took a downturn after hitting the $0.3850 resistance level, leading to a period of consolidation around the $0.3350 mark, with potential signs of a recovery wave on the horizon. The cryptocurrency initiated a descent from the $0.3550 support level, currently trading below $0.350 and the 100-hourly simple moving average. A short-term bearish trend line with resistance at $0.3480 is evident on the hourly chart of the ADA/USD pair.
The recent developments came after Cardano struggled to break above the $0.4150 resistance, forming a short-term peak and then descending, much like Bitcoin and Ethereum. The price breached the $0.3850 and $0.3650 support levels, dipping below $0.350 before the bulls intervened, establishing a low at $0.3360.
As Cardano consolidates its losses, it experienced a minor uptick above the $0.3420 level, testing the 23.6% Fibonacci retracement level of the downward move from the $0.3853 swing high to the $0.3360 low. Currently, ADA hovers below $0.360 and the 100-hourly simple moving average, facing potential resistance around the $0.3500 mark. The short-term bearish trend line continues to exert resistance at $0.3480.
The initial resistance lies near $0.360, aligned with the 50% Fibonacci retracement level of the recent downward swing. Another notable resistance stands at $0.3740. Should ADA manage to close above this resistance, it could spark a robust rally, pushing the price towards the $0.400 range and possibly aiming for $0.4150 with additional gains.
However, if Cardano fails to surpass the $0.3500 resistance, it risks another decline. Immediate support is situated near the $0.340 level, with a more significant support level at $0.3350. A break below this threshold could lead to a test of $0.3220, with the next substantial support being at $0.300, where buying interest might resurface.
Technical indicators reveal that the MACD for ADA/USD is gaining momentum within the bearish territory, while the RSI for ADA/USD is currently below the 50 level, indicating potential continued downside pressure. Crucial support levels to watch are $0.3400 and $0.3350, while resistance levels are pegged at $0.3500 and $0.3600.