ADA price failed to surpass the $1.6 on January 18th and went for a correction. Subsequently, by losing the $1.4, $1.2 a few days ago, it dipped as low as $1 and reached the $0.92 at some point. However, at that point it found support from buyers and regained $1. ADA climbed as high as $1.5 but yet again failed to surpass and had to settle back down at $1.
ADA Price Action Analysis
Taking a look at the 4-hour chart, we see ADA failing to surpass $1.6 and had a deep correction much like Bitcoin. Following that, ADA dipped to $1 and even went below this level. With that, ADA managed to recover and started to climb back. At that point, it rallied all the way up to $1.6 but once again failed at went back to $1.
Currently, the $1 level is absolutely crucial for ADA which is also near the trendline. In case of remaining above this level, Cardano will have another chance for recovery. For the bullish scenario, the SMA100 and the 50% Fibonacci retracement level at $1.06 are the key resistance levels. In case of a successful break through, the $1.16 and the $1.20 will be the next resistance levels for ADA.
On the other hand, if ADA price fails to surpass the $1.06 and loses the $1, the correction will continue. For the bearish scenario, the $0.95 and then the $0.90 will be key support levels for the price. Further decline can bring ADA as low as $0.80 and $0.70.
The Technical Indicators
MACD indicator: at the time of writing this article the 4-hour MACD indicator for ADA is on an upward momentum.
RSI: the 1-hour relative strength index is approximately 45.
Resistance levels: the first support level will be $1.06 followed by $1.16. The $1.20 to $1.25 zone is the next resistance levels.
Support levels: the first support for ADA is at $1 followed by $0.95 and then $0.9.
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