Charted: Cardano (ADA) Needs To Clear $0.10 For Hopes of a Fresh Rally

Aayush Jindal

1 year ago

2 mins read

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Cardano’s price is correcting higher from the $0.0880 support. Bitcoin price is surging, but ADA must climb above $0.0980 and $0.1000 to start a strong rally.

ADA extended its decline towards the $0.0880 support before correcting higher against the US dollar.
The price is now testing the $0.0950 resistance and it is well below the 100 simple moving average (4-hours).
There is a crucial bearish trend line forming with resistance near $0.0960 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
The pair is likely to start a fresh rally if there is a clear break above $0.0960 and $0.1000.

Cardano (ADA) is Facing Significant Resistance

In the past few days, cardano’s price followed a bearish path from well above $0.1050. ADA price even settled below the $0.1000 support level and the 100 simple moving average (4-hours).

The decline gained pace below the $0.0950 support level before the bulls appeared near the $0.0880 level. A new monthly low is formed near $0.0882 and the price is currently correcting higher. It recovered above the $0.0920 and $0.0935 levels.

There was a clear break above the 50% Fib retracement level of the downward move from the $0.0999 high to $0.0882 low. The price is now facing a strong resistance near the $0.0955 and $0.0960 levels.

Source: ADAUSD on TradingView.com

More importantly, there is a crucial bearish trend line forming with resistance near $0.0960 on the 4-hours chart of the ADA/USD pair. The trend line is close to the 61.8% Fib retracement level of the downward move from the $0.0999 high to $0.0882 low.

A clear break above the trend line resistance and $0.0960 could push the price towards the next key resistance at $0.1000 or the 100 simple moving average (4-hours). To continue higher, the price must gain strength above the $0.1000 resistance level. The next major resistance is at $0.1072, followed by $0.1120.

Fresh Decline?

If cardano’s price fails to clear the $0.0960 and $0.1000 resistance levels, there is a risk of a fresh decline. An initial support is near the $0.0920 level.

The main support is now forming near the $0.0900 and $0.0880 levels. A clear break below the $0.0880 support level may possibly spark a sharp decline towards $0.0820 or even $0.0800.

Technical Indicators

4-hours MACD – The MACD for ADA/USD is struggling to gain pace in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently just above the 50 level.

Major Support Levels – $0.0920, $0.0900 and $0.0880.

Major Resistance Levels – $0.0955, $0.0960 and $0.1000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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