TLDR
Cardano (ADA) has entered a consolidation phase after falling below $1.00, with current price action showing resistance at $1.020 and $1.040
A bearish trend line has formed with resistance at $1.015 on the hourly chart
Key support levels are established at $0.9450 and $0.9200, while major resistance sits at $1.020 and $1.050
Technical indicators suggest bearish momentum is weakening, with MACD losing momentum in the bearish zone
Potential for recovery exists if price breaks above $1.020, with next targets at $1.050 and $1.0650
Cardano (ADA) has entered a period of consolidation following a recent decline that pushed the price below the psychologically important $1.00 level. The cryptocurrency, which had previously shown strong momentum, is now trading below both the $1.00 mark and the 100-hourly simple moving average, indicating a shift in short-term market dynamics.
The downward movement began after ADA faced rejection at the $1.120 resistance zone, mirroring similar price action seen in other major cryptocurrencies like Bitcoin and Ethereum. The decline accelerated as the price broke below several key support levels, including $1.10 and $1.050, eventually finding a local bottom at $0.9151.
Recent price action shows that Cardano has managed to stabilize above the $0.940 level, clearing the 23.6% Fibonacci retracement level of the downward move from the $1.1113 swing high to the $0.9151 low. This suggests that while selling pressure remains present, buyers are beginning to show interest at current price levels.
A notable technical development is the formation of a bearish trend line with resistance at $1.015 on the hourly chart. This level coincides with the 50% Fibonacci retracement level of the recent downward movement, making it a crucial zone for traders to monitor.
The immediate price action appears to be contained within a consolidation pattern, with the $1.020 level emerging as a key resistance point. Multiple attempts to breach this level have been met with selling pressure, indicating that bulls need to gather more strength to overcome this hurdle.
Technical indicators provide mixed signals about the short-term direction. The hourly MACD shows diminishing bearish momentum, suggesting that selling pressure may be waning. However, the Relative Strength Index (RSI) remains below the 50 level, indicating that bears still maintain some control over the market.
Support levels have been established at $0.9450 and $0.9200, which could serve as potential bounce points if selling pressure continues. These levels have shown buying interest during recent declines and may continue to act as price floors in the near term.
Cardano Price on CoinGecko
On the upside, if buyers manage to push the price above the $1.020 resistance, the next target would be the $1.050 level. A successful break above this zone could open the path toward $1.0650, with the possibility of extending the recovery toward the $1.10 region.
The trading volume patterns suggest that market participants are currently in a wait-and-watch mode, with neither bulls nor bears showing overwhelming conviction at current levels. This reduced volatility could be setting the stage for the next directional move.
Charts show that the price structure is forming a series of lower highs, typically considered a bearish pattern. However, the decreasing momentum of the downward moves suggests that selling pressure may be exhausting.
The hourly timeframe reveals that price action is becoming increasingly compressed between support and resistance levels, often a precursor to a breakout move in either direction.
If the price fails to maintain support at current levels, the next major support zone lies at $0.920. Below this, the $0.90 level represents a psychological support point that could attract buying interest.
The $0.8650 level stands as a major support zone where historical price action suggests strong buying interest might emerge. This level could serve as the last line of defense for bulls if current support levels fail to hold.
Looking at market structure, the price needs to clear several technical hurdles to confirm a bullish reversal. The most immediate challenge is overcoming the resistance at $1.020, followed by the need to establish higher lows and higher highs.
The post Cardano (ADA) Price Analysis: Bulls Target Break Above $1.020 Resistance appeared first on Blockonomi.