Cardano's price has recently dipped under the $0.3565 mark, showing signs of a potential recovery attempt while remaining above $0.3420. However, the cryptocurrency is currently consolidating as it navigates through a fragile phase in its valuation.
Following a downturn past the $0.3520 support threshold, Cardano is now trading below $0.3500 and beneath its 100-hour simple moving average. Notably, a breach has occurred above a significant bearish trend line, presenting resistance at $0.3460, as recorded on the hourly ADA/USD chart sourced from Kraken. To pivot towards a recovery wave, the digital asset must overcome the $0.3520 resistance region.
Despite previously testing the $0.3700 resistance level, Cardano failed to sustain upward momentum, setting a short-term peak and starting a fresh descent, contrary to Bitcoin and Ethereum's trends. ADA encountered a slip below its $0.3550 and $0.3500 support zones. The bearish pressure drove the price under $0.3450 until a bullish intervention led to stabilization, with a low-point recorded at $0.3394. Since then, prices have been attempting to consolidate losses, with modest gains extending above the $0.3420 level. Further, the cryptocurrency has surpassed the 23.6% Fibonacci retracement from its downswing, from $0.3705 to $0.3394.
In breaking through a significant bearish line, Cardano now trades under the $0.350 level while contending with its 100-hour simple moving average. In terms of immediate upward resistance, the $0.3515 level is crucial, coupled with $0.3550 aligning with the 50% Fibonacci retracement level.
Should the cryptocurrency achieve a solid close above $0.3620, it may lead to a robust rally potentially ascending to $0.3700. A further price surge could target $0.3880.
Nonetheless, downside risks persist. Failing to breach the $0.350 resistance could initiate another slump. Immediate support is situated close to $0.3420, with more substantial backing believed to be near $0.3400. Should the price falter further below this critical level, a decline towards $0.3220 could ensue, where another support level rests at $0.3100, potentially arresting the downturn with renewed bullish activity.
Technical indicators currently depict a tentative sentiment.
The ADA/USD MACD is showing diminished momentum within the bearish territory. Meanwhile, the Relative Strength Index (RSI) sits below the midpoint of 50, suggesting a persisting bearish tilt. Crucial support and resistance thresholds remain at $0.3400, $0.3220, $0.3500, and $0.3550, respectively.