Key Takeaways:

  • ADA price is struggling to rise above the $0.350 resistance.

  • A key contracting triangle is forming with resistance at $0.3420 on the daily chart.

  • The price could slide again if it stays below $0.350 for a few more days.

New Delhi(Coinchapter.com): Cardano (ADA) is eyeing the next key move. The price might attempt a fresh increase if it clears $0.350 and $0.3670 in the near term.

Cardano Price Faces Uphill Task

After a major decline, ADA price found support near the $0.2780 zone. A low was formed at $0.2770 and the price recently started a recovery wave, like Ethereum and Bitcoin. The price climbed above the $0.2950 and $0.300 resistance levels.

The bulls pushed Cardano above the 23.6% Fib retracement level of the downward move from the $0.4568 swing high to the $0.2770 low. However, the bears seem to be active near the $0.350 zone and the price is still well below the 50-day simple moving average (blue).

Cardano price daily price chart | Source: ADA/USD on TradingView.com

ADA price is now consolidating near the $0.3350 level. More importantly, there is a key contracting triangle forming with resistance at $0.3420 on the daily chart.

To start a fresh increase, Cardano must clear the triangle resistance and $0.350. The first hurdle above the triangle zone sits at $0.3670. It is close to the 50% Fib retracement level of the downward move from the $0.4568 swing high to the $0.2770 low.

The main resistance is now forming near the $0.3882 level and the 50-day simple moving average (blue). A close above the $0.3882 zone could open the doors for more upsides. The next key resistance could be near the $0.420 zone. Any more gains might send ADA toward the $0.450 level.

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— Cardano Foundation (@Cardano_CF) August 9, 2024

Downside Break In ADA?

If there is no move above $0.350, ADA price could start another decline. Immediate support is near the $0.320 level and the triangle’s trend line. The first major support is near the $0.3190 level.

The next major support is near the $0.300 pivot level, below which there is a risk of a drop toward the $0.2770 level. Any more losses might increase selling pressure and send Cardano toward $0.250.

Overall, ADA is consolidating and eyeing the next key move. If the bulls gain strength, Cardano could start a steady increase above the $0.350 and $0.3670 resistance levels. Conversely, the price could dive and retest $0.300.

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