Reason to trust
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 rallied more than 12% and outpaced bitcoin’s 5% rise. ADA price is now trading well above $0.0500 and it could continue to rise towards the $0.0600 resistance area.
- ADA price started a strong rise after it broke a major resistance near $0.0465 against the US dollar.
- The price rallied above the $0.0500 and $0.0520 resistance levels.
- There was a break above a key contracting triangle with resistance near $0.0440 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
- The pair is likely to rise further towards the $0.0600 and $0.0620 resistance levels in the near term.
Cardano Bulls In Control
This past week, cardano formed a strong support base near the $0.0410 level. Later, ADA started a slow and steady rise above the $0.0420 resistance area.
Finally, it broke the $0.0440 and $0.0450 resistance levels to start a strong upward move. Moreover, there was a break above a key contracting triangle with resistance near $0.0440 on the 4-hours chart of the ADA/USD pair.
It opened the doors for more gains above the $0.0500 and $0.0520 resistance levels. The price traded to a new yearly high at $0.0545 and it is currently showing a lot of positive signs.
On the upside, an initial hurdle is near the $0.0550 level. A successful break above the $0.0550 level could propel cardano price towards the main $0.0600 resistance level. Any further gains could lead the price towards the $0.0620 level.
Dips In ADA Remain Supported
If ADA starts a downside correction, the $0.0520 area might act as a decent support. It coincides with the 23.6% Fib retracement level of the recent rise from the $0.0440 low to $0.0545 high.
The first major support for the bulls is near the $0.0500 level. In addition, the 50% Fib retracement level of the recent rise from the $0.0440 low to $0.0545 high is also positioned just below the $0.0500 level.
If cardano fails to stay above the $0.0500 support area, the bulls might lose control. In the mentioned bearish case, the price is likely to start a larger downside correction towards the $0.0465 support (the recent breakout zone) or it could test the 100 simple moving average (4-hours) in the coming days.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is gaining strong momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently well above the 70 level and it is in the overbought zone.
Major Support Levels – $0.0520, $0.0500 and $0.0465.
Major Resistance Levels – $0.0550, $0.0600 and $0.0620.
