Cardano (ADA) Surges 10% But Faces $0.60 Resistance

Cardano (ADA) has recently initiated a recovery phase, surging above the $0.5680 mark. However, the cryptocurrency is currently consolidating around the $0.60 level, facing significant resistance that could potentially trigger further declines.

In recent days, Cardano experienced a decline below the $0.60 level, mirroring the downward trends observed in Bitcoin and Ethereum. The price dropped below key support levels at $0.550 and $0.540, reaching a low of $0.5106 before initiating a recovery. This recovery saw the price surpass the $0.540 and $0.5550 levels, clearing the 50% Fibonacci retracement level of the recent decline from the $0.6712 swing high to the $0.5106 low.

Currently, Cardano is trading below $0.620 and the 100-hourly simple moving average. The price faces resistance near the $0.60 zone, with a connecting bearish trend line forming with resistance at $0.60 on the hourly chart of the ADA/USD pair. The first resistance is near $0.610 or the 61.8% Fib retracement level of the recent decline from the $0.6712 swing high to the $0.5106 low. The next key resistance might be $0.6320. If there is a close above the $0.6320 resistance, the price could start a strong rally, potentially rising toward the $0.680 region and even $0.70 in the near term.

However, if Cardano’s price fails to climb above the $0.60 resistance level, it could start another decline. Immediate support on the downside is near the $0.5680 level. The next major support is near the $0.5550 level. A downside break below the $0.5550 level could open the doors for a test of $0.5320. The next major support is near the $0.50 level where the bulls might emerge.

Technical indicators suggest that the MACD for ADA/USD is losing momentum in the bearish zone, while the RSI for ADA/USD is now above the 50 level. Major support levels are identified at $0.5680 and $0.5550, with major resistance levels at $0.6000 and $0.6100.