Cardano (ADA) Price Analysis: Trading Near Make-or-Break LevelsSeptember 8, 2020
Cardano price is currently consolidating above $0.0850 against the US Dollar, similar to bitcoin near $10,000. ADA price could either rally above $0.1000 or a breakdown below $0.0850.
Cardano Price Analysis
This past week, there was a sharp decline in cardano price below the $0.1000 support against the US Dollar. The ADA/USD pair even traded below the $0.0950 support and settled below the 55 simple moving average (4-hours).
It traded as low as $0.0856 and it seems like the price is currently consolidating above the key $0.0850 support. There was a minor upside correction above the $0.0900 level. It broke the 23.6% Fibonacci retracement level of the downward move from the $0.1039 high to $0.0856 low.
On the upside, cardano price is facing a major resistance near the $0.0950 level. There is also a major bearish trend line forming with resistance near $0.0950 on the 4-hours chart.
The trend line is close to the 50% Fibonacci retracement level of the downward move from the $0.1039 high to $0.0856 low. A clear break above the trend line resistance and then $0.1000 barrier is needed to start a decent recovery wave.
The next major resistance is near the $0.1050 level or the 55 simple moving average (4-hours). Any further gains could start a steady rise towards the $0.1120 level in the coming sessions.
Conversely, the price might restart its decline below the $0.0900 level. The main support is near the $0.0850 level, below which the bears are likely to aim another 10% decline.
The chart indicates that ADA price is clearly currently consolidating above the key $0.0850 support, but it is below the 55 simple moving average (4-hours). Overall, the price is likely to accelerate higher if it clears the $0.0950 and $0.1000 levels in the near term.
4 hours MACD – The MACD for ADA/USD is slowly moving into the bullish zone.
4 hours RSI – The RSI for ADA/USD is now just above the 40 level.
Key Support Levels – $0.0900 and $0.0850.
Key Resistance Levels – $0.0950 and $0.1000.
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