Cardano’s ADA Dives 20% But Will Remain Well Bid At $0.70

Cardano’s ADA dives 20% with its price trading to a new multi-month high of $0.9860  before correcting even lower. ADA dropped over 20% but could remain well bid near the $0.700 level so let’s read more in our latest Cardano news.

ADA started a strong surge and managed to climb above $0.9000 before correcting lower against the US dollar with the price trading well above $0.700 and the 100 simple moving average with a new break below a major bullish trend line with support at $0.8800 on the 4-hour chart of the pair. The BTC/USD pair will consolidate above $0.700 before starting a new increase in the near-term.

Over the past few days, Cardano’s price started another increase above the $0.70 resistance level and the price cleared the $0.800 resistance while settling well above the 100 simple moving average. Finally, there was a break above the $0.90 level but the price couldn’t reach the $1.00 level so it started a downside correction after setting a new multi-month high of $0.9860 and break below the $0.90 support levels.

There was a new break below the major bullish trend line with support at $0.880 on the 4-hour charts of the pair. The pair spiked below the $0.7200 support but remain well bid at $0.70. The price is trading above $0.70 and the 100 simple moving average with a new low getting formed near $0.6919 and the price recovering. It climbed above the 23.6% fib retracement level from the recent decline from the previous high of $0.9860 to the low of $0.6919. Looking at the upside, there’s a major resistance forming near the $0.8500 level while still being a connecting bearish trend line near the $0.8500 on the chart. The trend line coincided with the 50% fib retracement level from the drop at $0.9860 high to $0.6919 low.

Breaking above the $0.850 resistance and the trend line could start a new surge with the next key resistance sitting at $0.900. If Cardano’s price fails to clear the $0.840 and the $0.850 resistance it could start correcting even with initial support near the $0.7200 level. The main support is forming near the $0.700 level and a new break below this support could push the price to the 100 simple moving average. The 4-hour MACD for the pair is gaining momentum in the bearish zone while the 4-hour RSI is below 50. Cardano’s ADA dives 20% but could still manage to rise.