Charted: Cardano (ADA) Corrects Gains, Why It Could Rally Again To $1.5

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Cardano’s price gained over 25% this week and it broke the key $1.200 resistance zone. ADA is likely to continue higher above the $1.300 and $1.400 resistance levels.

ADA is showing a lot of positive signs above the $1.200 pivot level against the US dollar.
The price is trading nicely above $1.2000 and the 100 simple moving average (4-hours).
There was a break above a crucial bearish trend line with resistance near $1.050 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
The pair might correct lower, but the larger trend is up and it could rise above $1.500.

Cardano (ADA) is Correcting Gains

After forming a support base above the $0.9980 and $1.00 levels, cardano’s price started a fresh increase. ADA price broke the $1.120 and $1.200 resistance levels to move into a positive zone.

There was also a break above a crucial bearish trend line with resistance near $1.050 on the 4-hours chart of the ADA/USD pair. The pair even cleared the $1.220 resistance zone. It is now trading nicely above $1.2000 and the 100 simple moving average (4-hours).

ADA climbed towards the $1.480 resistance and high is formed near $1.472. Recently, there was a downside correction below the $1.335 support zone zone. The price also spiked below the 50% Fib retracement level of the upward move from the $1.001 swing low to $1.472 high.

Source: ADAUSD on TradingView.com

However, the bulls are protecting the key $1.2000 support zone. The price is also holding the 61.8% Fib retracement level of the upward move from the $1.001 swing low to $1.472 high.

If there is a downside break below the $1.200 support and the 100 simple moving average (4-hours), there could be a trend change. In the stated case, the price could decline towards the $1.050 support.

Fresh Increase?

If cardano’s price stays above the $1.200 support, it could start a fresh increase. On the upside, an immediate resistance is near $1.300 and $1.335.

The next major resistance is near the $1.400 and $1.405 levels. A clear break above the $1.400 resistance will most likely open the doors for a steady increase towards the $1.500 level in the near term.

Technical Indicators

4-hours MACD – The MACD for ADA/USD is slowly gaining momentum in the bearish zone.

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

Major Support Levels – $1.200, $1.180 and $1.050.

Major Resistance Levels – $1.300, $1.335 and $1.400.

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.