Charted: Cardano (ADA) Rallies 30%, Why Bulls Are Not Done Yet

Aayush Jindal

1 year ago

2 mins read

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Cardano’s price started a strong surge over $0.2000, similar to bitcoin. ADA is showing positive signs and it is likely to continue higher above $0.2800 and $0.3000.

ADA started a strong surge above the $0.2000 and $0.2400 resistance levels against the US dollar.
The price is now trading well above $0.2600 and the 100 simple moving average (4-hours).
There was a break above a key contracting triangle with resistance near $0.2280 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
The pair is likely to continue higher above $0.2800 and $0.2850 in the coming sessions.

Cardano (ADA) is Surging

In the past few days, cardano’s price started a strong increase after it settled above $0.2000. ADA price rallied significantly and it broke many important hurdles near $0.2250 and $0.2300.

There was also was a break above a key contracting triangle with resistance near $0.2280 on the 4-hours chart of the ADA/USD pair. It opened the doors for more gains above the $0.2500 level and the price settled well above the 100 simple moving average (4-hours).

The price even traded above the $0.2650 level and traded to a new multi-week high at $0.2751. It is currently consolidating gains above the $0.2500 and $0.2600 levels. An initial support on the downside is near the $0.2550 level.

Source: ADAUSD on TradingView.com

It is close to the 23.6% Fib retracement level of the recent upward move from the $0.1929 swing low to $0.2751 high. On the upside, the price is likely to face resistance near $0.2750.

A close above the recent high could open the doors for more gains above $0.2800 and $0.2850. The next major resistance on the upside is seen near the $0.3000 level.

Dips Supported?

If cardano’s price fails to clear the $0.2750 and $0.2800 resistance levels, it could correct lower. An initial support is near the $0.2500 level.

The main support is now forming near the $0.2350 level. It is close to the 50% Fib retracement level of the recent upward move from the $0.1929 swing low to $0.2751 high. There is also a connecting bullish trend line forming with support near $0.2000 on the same chart.

Technical Indicators

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

4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently in the overbought zone.

Major Support Levels – $0.2550, $0.2500 and $0.2350.

Major Resistance Levels – $0.2750, $0.2800 and $0.3000.

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.
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