Charted: Cardano (ADA) Remains Strong Above 100 SMA, Why It Could Rally Again

Aayush Jindal

1 year ago

2 mins read

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Cardano’s price traded to a new multi-month high at $1.23 before correcting lower. ADA declined sharply below $1.00, but the bulls were active above $0.8500.

ADA surged towards the $1.25 level before correcting lower against the US dollar.
The price is still trading well above $0.9500 and the 100 simple moving average (4-hours).
There is a crucial bullish trend line forming with support near $0.8500 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
The pair could face hurdles near $1.06, but the overall trend seems to be positive.

Cardano (ADA) is Showing Bullish Signs

In the past few days, cardano’s price started a steady increase above the $0.9500 resistance. ADA price even cleared the $1.00 resistance and settled well above the 100 simple moving average (4-hours).

Finally, there was a break above the $1.10 level and a new multi-month high was formed near $1.23. Recently, there was a sharp downside correction below the $1.10 and $1.00 levels. The price even dived below the $0.9500 support level.

The price even tested the $0.8500 support level, but there was no close below the 100 simple moving average (4-hours). A low is formed near $0.8057 and the price is currently recovering. It climbed above the 50% Fib retracement level of the recent decline from the $1.23 high to $0.8057 low.

Source: ADAUSD on TradingView.com

There is also a crucial bullish trend line forming with support near $0.8500 on the 4-hours chart of the ADA/USD pair. The price is now showing a lot of positive signs above the $0.9500 level.

On the upside, there is a strong resistance forming near the $1.06 level. It is close to the 76.4% Fib retracement level of the recent decline from the $1.23 high to $0.8057 low. A clear break above the $1.06 level could open the doors for a sharp increase towards the $1.20 level.

Dips Supported?

If cardano’s price fails to clear the $1.05 and $1.06 resistance levels, it could again correct lower. An initial support is near the $0.9500 level.

The main support is now forming near the $0.9000 level and the 100 simple moving average (4-hours). Any more losses below $0.9000 might risk of a break below $0.8500.

Technical Indicators

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

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

Major Support Levels – $0.9800, $0.9500 and $0.9000.

Major Resistance Levels – $1.05, $1.06 and $1.20.

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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