Cardano (ADA) Battles Resistance: A Fresh Surge In Sight?

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The price of Cardano initially dropped after reaching around $1.325, but it’s currently pausing and encountering resistance at approximately $1.20 and $1.240.

  • ADA price started a pullback after it failed to stay above $1.30.
  • The price is trading below $1.20 and the 100-hourly simple moving average.
  • There is a key bearish trend line forming with resistance at $1.20 on the hourly chart of the ADA/USD pair (data source from Kraken).
  • The pair could start another increase if it clears the $1.240 resistance zone.

Cardano Price Eyes Fresh Increase

Following difficulties surpassing $1.30, Cardano initiated a decline. Unfortunately, ADA failed to match the performance of Bitcoin and Ethereum, plunging beneath the $1.20 threshold. Remarkably, its price dipped as low as $1.150 before the bulls stepped in.

Initially, a dip occurred at $1.1173, but then the value began a new upward trend. It successfully broke through the barriers at $1.140 and $1.1550. Furthermore, it went beyond the 50% Fibonacci retracement level from the peak at $1.326 to the trough at $1.117.

Nevertheless, the bears have become more active around the $1.25 region. They managed to hold the 61.8% Fibonacci retracement level of the drop that started at the $1.326 peak and bottomed out at $1.117.

Currently, the value of Cardano is trading under $1.20 and below its 100-hour moving average. On the positive side, potential obstacles for growth may arise around the $1.20 region. Additionally, a significant bearish trend line is being formed with resistance at $1.20 on the hourly graph of Cardano to USD pair.

Initially, a significant hurdle is located around $1.2250. If we surpass this, another important barrier could be found at approximately $1.2450. Should the price manage to exceed this second obstacle, it might initiate a powerful upward trend. In such a scenario, the price could potentially rise towards the region of $1.2780. Further advancements may prompt a movement towards $1.320.

Another Decline in ADA?

Should the value of Cardano not surpass the $1.20 barrier, there’s a possibility it might initiate another drop. In case of a fall, a nearby support lies around the $1.150 mark.

Approaching resistance can be found around the $1.120 mark. If this level is breached downwards, it may lead to a possible test at $1.080. Further potential support lies near $1.0450, where buyers could potentially re-enter the market.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.

Major Support Levels – $1.120 and $1.080.

Major Resistance Levels – $1.20 and $1.2450.

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2024-12-09 08:10