Cardano price failed to hold gains above $0.1000 and corrected lower. ADA is currently following a bearish structure and it could retest the $0.0750 support before fresh increase.
- Cardano price seems to be facing a strong resistance near $0.0850 and $0.0900.
- A significant declining channel is formed with resistance at $0.0860 on the 2-hours chart.
- ADA is likely to retest the $0.0750 support area before bulls starts buying aggressively.
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Cardano Price Analysis (ADA to USD)
Earlier this month, we saw a solid upward move in cardano price above the $0.1000 resistance level against the US dollar. ADA traded close to the $0.1010 level, but it failed to continue higher. A swing high was formed near $0.1016 and later the price started a steady downside correction.
Click to Enlarge Chart
Looking at the 2-hours chart of ADA/USD, the pair declined below the $0.0920 and $0.0850 support levels to enter a bearish zone. There was even a break below the $0.0800 level and the 25 simple moving average (2-hours).
A swing low was formed at $0.0764 and the price recently corrected above the $0.0800 level and the 23.6% Fib retracement level of the last drop from the $0.0942 high to $0.0764 low.
The price even climbed above the $0.0850 resistance and the 50% Fib retracement level of the last drop from the $0.0942 high to $0.0764 low. However, the $0.0874 level acted as a strong resistance and prevented further upsides.
More importantly, there is a significant declining channel in place with current resistance at $0.0860 on the same chart. Therefore, a clear break above the channel resistance is must for buyers to take back control. The next immediate resistance is at $0.0900, above which cardano is likely to climb towards the key $0.1000 resistance area.
On the other hand, there are chances of additional losses below the $0.0800 level. The price could revisit the $0.0750 support area, which is a crucial juncture for both buyers and sellers. As long as cardano price is above $0.0750, there could be a strong upward move above $0.0860 in ADA in the coming days.