Cardano (ADA) Dips: Temporary Correction or Start of Deeper Move?

Cardano price started a fresh increase above the $0.750 zone. ADA is now correcting gains from $0.8650 and testing the $0.7750 support.

• ADA price started a decent increase above $0.750 and $0.7750.
• The price is trading below $0.80 and the 100-hourly simple moving average.
• There was a break below a connecting bullish trend line with support at $0.820 on the hourly chart of the ADA/USD pair (data source from Kraken).
• The pair could start another increase if it clears the $0.80 resistance zone.

In the past few days, Cardano saw a fresh increase above the $0.750 level, like Bitcoin and Ethereum. ADA was able to clear the $0.7750 and $0.80 resistance levels.

It tested the $0.8650 zone. A high was formed at $0.8634 and the price recently corrected some gains. There was a move below the $0.80 level. Besides, there was a break below a connecting bullish trend line with support at $0.820 on the hourly chart of the ADA/USD pair.

The pair tested the $0.7750 zone. A low was formed at $0.7742 and the price is now consolidating below the 23.6% Fib retracement level of the recent decline from the $0.8634 swing high to the $0.7742 low.

Cardano price is now trading below $0.80 and the 100-hourly simple moving average. On the upside, the price might face resistance near the $0.80 zone. The first resistance is near $0.8180. The next key resistance might be $0.8450.

If there is a close above the $0.8450 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.880 region. Any more gains might call for a move toward $0.90 in the near term.

If Cardano’s price fails to climb above the $0.80 resistance level, it could start another decline. Immediate support on the downside is near the $0.7750 level.

The next major support is near the $0.740 level. A downside break below the $0.740 level could open the doors for a test of $0.7050. The next major support is near the $0.680 level where the bulls might emerge.

Technical Indicators

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

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

Major Support Levels – $0.7750 and $0.7400.

Major Resistance Levels – $0.8000 and $0.8180.