Cardano (ADA) has started to show promising upward momentum after breaking through key resistance levels. With the current trend, ADA might continue its rise and aim for higher targets. Let’s delve into the recent price movements and analyze the potential future trajectory of Cardano.
Cardano Price Shows Positive Momentum
Cardano’s price initiated a recovery wave from the $0.3220 level. The price is currently trading above $0.350 and remains above the 100-hourly simple moving average. A significant break occurred above a key bearish trend line with resistance at $0.3430 on the hourly chart of the ADA/USD pair, indicating a potential for further gains.
- The ADA price began its recovery from the $0.3220 level.
- It is now trading above $0.350 and the 100-hourly simple moving average.
- There was a breakout above a key bearish trend line with resistance at $0.3430 on the hourly chart.
- The pair might continue to rise if it remains stable above the $0.3440 support zone.
Cardano Price Starts Steady Increase
After establishing a base above the $0.330 level, Cardano began a steady increase. The price moved above the $0.3350 and $0.340 resistance levels, similar to movements seen in Bitcoin and Ethereum. A significant breakout above a key bearish trend line with resistance at $0.3430 was observed on the hourly chart of the ADA/USD pair. The price even spiked above $0.350, forming a high at $0.3587 before consolidating gains.
The current price is trading above the 23.6% Fibonacci retracement level of the upward move from the $0.3300 swing low to the $0.3587 high. Cardano’s price is now well-positioned above $0.350 and the 100-hourly simple moving average.
Upside Potential for Cardano
On the upside, the price might encounter resistance around the $0.3580 zone. The first significant resistance level is near $0.3620, followed by another key resistance at $0.3650. If Cardano manages to close above the $0.3650 resistance, it could trigger a strong rally. In such a scenario, the price might rise toward the $0.380 region, with further gains potentially pushing it toward the $0.400 mark.
Are Dips Supported in ADA?
If Cardano’s price fails to surpass the $0.3580 resistance level, it might face another decline. Immediate support on the downside is near the $0.350 level. The next major support is around the $0.3440 level, which coincides with the 50% Fibonacci retracement level of the upward move from the $0.3300 swing low to the $0.3587 high.
A downside break below the $0.3440 support level could open the doors for a test of the $0.330 level. The next significant support level is near $0.320, where bulls might likely re-emerge to provide support.
Technical Indicators
Hourly MACD
The MACD for ADA/USD is gaining momentum in the bullish zone, indicating a positive outlook in the short term.
Hourly RSI
The RSI for ADA/USD is now above the 50 level, suggesting that the bulls are currently in control.
Major Support Levels
$0.3500 and $0.3440
Major Resistance Levels
$0.3580 and $0.3650
