Cardano initiated a downward correction after hitting the $1.325 mark, revealing its current struggle between the $1.20 and $1.240 levels. Despite strong performance earlier, ADA faces significant hurdles in its path.
After failing to maintain a position above $1.30, ADA started to retreat. It now trades below $1.20, sitting under the 100-hourly simple moving average. A bearish trend line develops, with resistance seen at $1.20 on the ADA/USD hourly chart from Kraken. Yet, a surge could occur if ADA bypasses the $1.240 resistance zone.
Following a struggle above $1.30, ADA’s correction sees it underperform against Bitcoin and Ethereum, dropping under $1.20. It even briefly fell below $1.150 before a resurgence happened, forming a low at $1.1173. A fresh uptick began with ADA climbing past $1.140 and $1.1550 resistance zones. ADA conquered the 50% Fibonacci retracement level from the $1.326 peak to the $1.117 trough.
Nevertheless, bear activity is evident near the $1.25 range, guarding the 61.8% retracement from the descent between $1.326 and $1.117. Currently, ADA trades under $1.20, with the 100-hour moving average looming overhead. Resistance is expected around $1.20, reinforced by a bearish trend line on the hourly ADA/USD chart.
Initial resistance is poised at $1.2250, with another checkpoint at $1.2450. A close above this level could ignite a rally, potentially driving ADA to the $1.2780 mark. Continued gains might propel the price to $1.320.
Failure to breach the $1.20 resistance could spark another downturn for ADA. Initial support lies around $1.150. Further support is expected at $1.120. A dip below this threshold could prompt tests of lower levels near $1.080 and $1.0450, where bulls may reappear.
The hourly MACD for ADA/USD remains active in bearish territory. In parallel, the hourly RSI falls below the 50 mark. Key support zones rest at $1.120 and $1.080, with major resistance thresholds at $1.20 and $1.2450.