Cardano (ADA) price recently experienced a downside correction from the $1.325 zone, leading to a period of consolidation. The cryptocurrency is now facing hurdles near the $1.20 and $1.240 levels as it attempts to find its footing in the market.
The pullback in ADA price came after it failed to maintain its position above $1.30, causing it to trade below $1.20 and the 100-hourly simple moving average. A key bearish trend line has formed with resistance at $1.20 on the hourly chart of the ADA/USD pair, as per data sourced from Kraken.
Despite the correction, Cardano price is now eyeing a fresh increase after finding support near $1.1173 and initiating a new uptrend. The price has managed to surpass resistance levels at $1.140 and $1.1550, along with the 50% Fib retracement level of the previous downward move from the $1.326 swing high to the $1.117 low.
However, the $1.25 zone is currently acting as a barrier for the bulls, with resistance expected near $1.20. The presence of a bearish trend line further adds to the challenges faced by Cardano in its attempt to push higher.
In the event that ADA manages to clear the $1.240 resistance zone, it could pave the way for another increase, potentially leading to a strong rally towards the $1.2780 region. Further gains might see the price aiming for the $1.320 level, marking a significant uptrend for the cryptocurrency.
On the flip side, if Cardano fails to break above the $1.20 resistance level, it could trigger another decline. Immediate support is seen near $1.150, followed by a major support level at $1.120. A break below $1.120 could lead to further downside movement towards $1.080, with the next major support level located at $1.0450.
Technical indicators suggest mixed signals, with the MACD for ADA/USD gaining momentum in the bearish zone and the RSI falling below the 50 level. Major support levels to watch include $1.120 and $1.080, while major resistance levels are identified at $1.20 and $1.2450.
Overall, Cardano price is currently navigating through a period of consolidation and facing key resistance levels as it seeks to resume its upward trajectory in the cryptocurrency market.