June 22, 2021

Charted: Cardano (ADA) is Facing Hurdles, Why It Could Extend Losses

2 min read

Cardano’s cost is having a hard time to clear the $1.200 resistance zone. ADA remains at a risk of more losses listed below the $1.050 and $1.020 support levels in the near term.

  • ADA is having a hard time to recuperate, but it is still well above the $1.000 level versus the United States dollar.
  • The rate is still dealing with hurdles near $1.200 and the 100 easy moving typical (4-hours).
  • There is a major bearish pattern line forming with resistance near $1.150 on the 4-hours chart of the ADA/USD set (data source from Bitfinex).
  • The pair could dip further unless there is a clear break above $1.150 and $1.200 in the near term.

Cardano (ADA) Remains At a Risk

After a sharp rally, cardano’s cost had a hard time to extend gains above $1.487. ADA cost began a disadvantage correction and traded below a key support near the $1.200 level.

The price even traded listed below the $1.100 support and settled listed below the 100 easy moving average (4-hours). A low is formed near $1.036 and the rate is presently remedying higher. There was a break above $1.100 and $1.120 resistance levels.

There was a break above the 23.6% Fib retracement level of the downward move from the $1.487 high to $1.036 low. The price even surged above the $1.150 resistance and the 100 simple moving average (4-hours).

Cardano (ADA)

Source: ADAUSD on TradingView.com Nevertheless, there was no upside break above the $1.200 resistance. There is likewise a significant bearish pattern line forming with resistance near $1.150 on the 4-hours chart of the ADA/USD set. The pair is now trading well listed below the 50% Fib retracement level of the down relocation from the $1.487 high to $1.036 low.

On the disadvantage, the $1.050 level is a decent support. The main assistance is now forming near the $1.035 level. A drawback break below the $1.035 level could open the doors for a move towards the $1.000 and $0.9500 levels in the near term.

Upsides Capped?

If cardano's price stays above the $1.050 support, it might make an attempt to clear the trend line resistance at $1.150. If the bulls succeed, the cost might rally towards the $1.200 and $1.220 levels.

In the mentioned case, the cost could even climb up above the $1.250 level. Any more gains might lead the price towards the $1.450 level.

Technical Indicators

4-hours MACD –-- The MACD for ADA/USD is struggling to acquire momentum in the bullish zone.

4-hours RSI (Relative Strength Index) –-- The RSI for ADA/USD is presently below the 50 level.

Significant Support Levels –-- $1.050, $1.035 and $1.000.

Significant Resistance Levels –-- $1.150, $1.200 and $1.220.