Cardano (ADA) price has initiated a promising recovery wave, breaking past the $0.3620 resistance level. ADA is currently exhibiting positive indicators, suggesting a potential rise towards the $0.420 mark.
- ADA price began a recovery wave from the $0.3420 level.
- The price is trading above $0.380 and the 100-hourly simple moving average.
- A key bullish trend line is forming with support at $0.3810 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could continue to ascend if it remains stable above the $0.3800 support zone.
Cardano Price Starts Steady Increase
After establishing a support base above the $0.3420 level, Cardano has embarked on a notable upward movement. This bullish trend saw ADA breaking past the $0.3550 and $0.3650 resistance levels, similar to the trends observed in Bitcoin and Ethereum. The bulls managed to push the price above the $0.380 resistance level, reaching a high of $0.3938 before the price started consolidating its gains.
ADA is currently trading above $0.380 and the 100-hourly simple moving average. Additionally, a key bullish trend line with support at $0.3810 is forming on the hourly chart of the ADA/USD pair. This trend line is crucial for maintaining the bullish momentum.
Upside Potential
On the upside, ADA might encounter resistance near the $0.3900 zone. The initial resistance is positioned around $0.3940, followed by a significant resistance level at $0.4200. A successful close above the $0.4200 resistance could trigger a strong rally, potentially driving the price towards the $0.450 region. Further gains might even propel ADA towards the $0.500 level.
Are Dips Supported in ADA?
However, if Cardano fails to surpass the $0.3900 resistance level, it could face another decline. Immediate support is near the $0.380 level and the aforementioned trend line. The next significant support level is around $0.3650, which coincides with the 50% Fibonacci retracement level of the upward movement from the $0.3432 swing low to the $0.3938 high.
A break below the $0.3650 support could open the doors for a test of the $0.3550 level. The following major support is near the $0.3420 level, where bulls are likely to emerge and defend the price.
Technical Indicators
Hourly MACD
The MACD for ADA/USD is gaining momentum in the bullish zone, indicating a positive outlook for the near term.
Hourly RSI (Relative Strength Index)
The RSI for ADA/USD is currently above the 50 level, demonstrating a bullish sentiment in the market.
Support and Resistance Levels
Major Support Levels: $0.3800 and $0.3650.
Major Resistance Levels: $0.3900 and $0.4200.
