NewsBTC
9 December 2024
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Cardano Price Faces Resistance at $1.20 After Recent Pullback

Cardano's price is experiencing a downside correction from the $1.325 zone and is facing resistance near the $1.20 and $1.240 levels.

  • ADA began a pullback after failing to maintain a position above $1.30.
  • The price is currently below $1.20 and the 100-hourly simple moving average.
  • A key bearish trend line with resistance at $1.20 is forming on the hourly chart of the ADA/USD pair (data source from Kraken).
  • If the pair clears the $1.240 resistance zone, it may initiate another increase.

Cardano Price Eyes Fresh Increase

After struggling to stay above $1.30, Cardano initiated a downside correction. ADA underperformed compared to Bitcoin and Ethereum, dropping below $1.20. The price dipped below $1.150 before bullish activity emerged.

A low was established at $1.1173 before a fresh increase occurred. The price moved above the $1.140 and $1.1550 resistance levels, surpassing the 50% Fibonacci retracement level of the decline from $1.326 to $1.117.

Bears are active near the $1.25 zone, protecting the 61.8% Fibonacci retracement level of the previous downward move.

Currently, Cardano trades below $1.20 and the 100-hourly simple moving average. Resistance may be encountered around the $1.20 zone, with a key bearish trend line also present.

Cardano Price

The first resistance level is near $1.2250, followed by $1.2450. A close above $1.2450 could trigger a strong rally, potentially pushing the price toward $1.2780 and possibly $1.320 with further gains.

Potential for Another Decline in ADA

If Cardano fails to break above the $1.20 resistance level, another decline may occur. Immediate support is near $1.150, with major support at $1.120. A break below $1.120 could lead to testing the $1.080 level, where additional support is found around $1.0450.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is below the 50 level.

Major Support Levels – $1.120 and $1.080.

Major Resistance Levels – $1.20 and $1.2450.