Cardano Price Analysis: ADA/USD Approaching SupportJune 4, 2018
- ADA price traded above the $0.2200 resistance level before correcting lower against the US Dollar (tethered).
- There was a break below a connecting bullish trend line with support at $0.2300 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair is currently approaching a major support area near the $0.2180 and $0.2150 levels.
Cardano price is correcting lower against the US Dollar and Bitcoin. ADA/USD must stay above the $0.2150 level to resume its upside move in the near term.
Cardano Price Analysis
There were further upsides above the $0.2000 pivot level in ADA price against the US Dollar. The price traded above the $0.2150 and $0.2200 resistance levels. There was also a break above the $0.2300 level and a high was formed at $0.2336. Later, the price started a downside correction and moved below $0.2300. It also broke the 23.6% Fib retracement level of the last wave from the $0.1962 low to $0.2336 high.
More importantly, there was a break below a connecting bullish trend line with support at $0.2300 on the hourly chart of the ADA/USD pair. The pair broke the $0.2250 support and settled below the 100 hourly simple moving average. On the downside, there is a major support waiting near $0.2150. The 50% Fib retracement level of the last wave from the $0.1962 low to $0.2336 high is also around $0.2160. Therefore, the $0.2150 and $0.2160 support levels hold a lot of importance in the near term.
The chart indicates that the price is struggling, but the $0.2150 support may hold declines. Should there be a downside break below $0.2150, the price may well test $0.2000. On the upside, the price is facing hurdles near the $0.2250, $0.2300 and $0.2330 levels.
Hourly MACD – The MACD for ADA/USD is moving back in the bearish zone.
Hourly RSI – The RSI for ADA/USD has moved below the 50 level and is currently heading south.
Major Support Level – $0.2150
Major Resistance Level – $0.2300
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