Cardano Price Analysis: ADA/USD Turned Bearish
- ADA price declined sharply below the $0.2000 level and moved into a bearish zone against the US Dollar (tethered).
- There is a key bearish trend line formed with resistance at $0.1650 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair has to break the $0.1650 and $0.1700 resistance levels to start a substantial recovery.
Cardano price is under a lot of bearish pressure against the US Dollar and Bitcoin. ADA/USD must stay above the $0.1500 level to contain losses in the near term.
Cardano Price Analysis
There were heavy slides in ADA price this week as it crashed below the $0.2000 support against the US Dollar. It followed bitcoin and Ethereum and crashed more than 25%. It even moved a few points below the $0.1500 level before buyers appeared. A low was formed near the $0.1460 level and the price corrected higher. It moved above the 23.6% Fib retracement level of the last decline from the $0.1815 high to $0.1459 low.
However, there are many barriers on the upside near the $0.1600 and $0.1650 levels. There is also a key bearish trend line formed with resistance at $0.1650 on the hourly chart of the ADA/USD pair. The same trend line resistance is close to the previous pivot level at $0.1640 level. Moreover, the 50% Fib retracement level of the last decline from the $0.1815 high to $0.1459 low is also at $0.1635 to prevent gains. Therefore, it seems like there is a major barrier forming for buyers near the $0.1650 level. A close above this is needed for a recovery towards the $0.1850 level.
The chart indicates the price is under a lot of pressure below $0.2000. It may correct higher, but it remains at a risk of more losses below $0.1600.
Hourly MACD – The MACD for ADA/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ADA/USD is still well below the 50 level.
Major Support Level – $0.1500
Major Resistance Level – $0.1650