Cardano's (ADA) recent positive momentum faces a risk as it hovers near the $0.550 zone. After a steady rise beyond the $0.565 resistance against the US Dollar, ADA/USD encountered a hurdle around $0.620. The recent high reached approximately $0.6196, prompting a corrective move.
Testing Supports
- ADA tested the $0.620 zone but corrected lower, breaching the $0.600 support.
- A break below the 50% Fib retracement level occurred from the $0.4650 swing low to the $0.6196 high.
- A significant bullish trend line with support near $0.5420 on the 4-hour chart was broken.
Current Status
- Bulls are defending the $0.525 support, where the 61.8% Fib retracement level also acts as a key support.
- ADA price trades below $0.550 and the 55 simple moving average (4 hours).
- Immediate resistance lies near the $0.550 zone.
Potential Scenarios
- The $0.565 resistance marks a crucial point; a clear move above may lead to a strong rally towards $0.620.
- Further gains could propel the price to $0.650 or even $0.700.
Downside Risks
- Immediate support at $0.524, with a major support level around $0.500.
- A break below $0.500 might trigger a descent towards $0.4650, and extended losses could reach the $0.450 support.
Technical Indicators
- 4 hours MACD shows a loss of bullish momentum.
- 4 hours RSI is below the 50 level.
Cardano (ADA) Price
Cardano's current position below $0.550 suggests cautious optimism. Clearing resistances at $0.550 and $0.565 is crucial for a bullish trend. Key support levels at $0.524 and $0.500 will be closely monitored for potential downside risks.