Cardano (ADA) Slips: Is the Bull Run Over?

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The cost of Cardano initially dropped beneath the 1.050 dollar mark, indicating potential resistance. For now, ADA seems to be holding steady, potentially facing challenges to rise again above the 1.0250 dollar threshold.

  • ADA price started a fresh decline from the $1.150 zone.
  • The price is trading below $1.0550 and the 100-hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance at $1.040 on the hourly chart of the ADA/USD pair (data source from Kraken).
  • The pair could start another increase if it clears the $1.050 resistance zone.

Cardano Price Faces Hurdles

Following some difficulty holding its position above $1.150, contrary to Bitcoin and Ethereum, Cardano initiated a new drop in price. The ADA token ultimately fell beneath both the $1.050 and $1.0350 levels of support.

The price dropped as low as $0.9615, but is now trying to rebound. It briefly went above $0.990 and has surpassed the 23.6% Fibonacci retracement level of its decline from the peak at $1.088 to the trough at $0.9615.

Currently, the cost of Cardano is being traded slightly below $1.050 and is also beneath its 100-hour moving average. As we look at potential upward movements, there may be resistance encountered around the $1.0250 region. This area aligns with approximately half (50%) of the retracement from the peak at $1.088 down to the low at $0.9615.

Approaching the initial resistance at approximately $1.05, and a bearish trend line is forming with a resistance point at around $1.04 on the hourly chart of ADA/USD. The potential next resistance level may be found at $1.0880. If the price manages to surpass $1.0880, it could initiate a significant upward movement.

In the scenario at hand, the price may trend upwards towards around $1.120. If it continues to increase, it might necessitate a further rise towards approximately $1.1520 in the short-term.

Another Decline in ADA?

Should the price of Cardano not manage to surpass the $1.050 barrier, there’s a possibility it may initiate another drop. In case of a fall, there’s a supportive floor around $0.980.

Moving forward, significant resistance can be found around the $0.9650 mark. If prices fall below this level, there’s potential for a drop to $0.9200. On the other hand, if bears take over, potential support could lie at $0.880, where bulls might attempt a comeback.

Technical Indicators

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

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

Major Support Levels – $0.980 and $0.9650.

Major Resistance Levels – $1.0250 and $1.0500.

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2025-01-20 08:28