Cardano’s price is undergoing a consolidation phase beneath the $0.6650 mark. Despite this, ADA is maintaining its gains and could be gearing up for a renewed surge above the $0.6500 threshold.
Key Highlights of Cardano’s Price Movement
- After a robust rally towards $0.6600, ADA commenced a downward correction.
- The price remains above $0.580 and is supported by the 100-hourly simple moving average.
- A significant contracting triangle is forming with support at $0.5780 on the hourly chart of the ADA/USD pair, sourced from Kraken.
- The pair could potentially initiate another upward movement if it surpasses the $0.6060 resistance zone.
Cardano Price Holds Steady Amid Gains
Over recent days, Cardano has experienced a substantial increase, breaking past the $0.40 resistance and outperforming major cryptocurrencies like Bitcoin and Ethereum. This upward momentum saw it surpass the $0.450 and $0.50 resistance levels, eventually climbing above the $0.600 mark. The price reached a peak of $0.6620 before entering a consolidation phase. A slight pullback was observed, dipping below the $0.6120 level, and crossing the 23.6% Fibonacci retracement level, measured from the $0.4277 swing low to the $0.6620 high.
Despite this minor correction, bullish momentum remains strong above $0.5500, supported by the 50% Fibonacci retracement level of the aforementioned upward move. Currently, Cardano’s price is trading above $0.580, maintaining its position over the 100-hourly simple moving average. The formation of a contracting triangle, with support at $0.5780 on the hourly chart of the ADA/USD pair, is a key technical indicator. On the upside, resistance could be encountered near the $0.6060 zone, with initial resistance at $0.6230 and subsequent significant resistance at $0.6450.
Potential for a Bullish Rally
Should Cardano achieve a close above the $0.6450 resistance, it could trigger a strong rally. In such a scenario, the price might ascend towards the $0.6800 region, with further gains potentially paving the way for a climb towards $0.700.
Risk of Further Losses in ADA
However, if Cardano’s price fails to breach the $0.6060 resistance level, it may face a decline. Immediate support on the downside is positioned near the $0.5780 level. The subsequent major support lies around $0.550. A breach below this point could lead to a test of the $0.5180 level, with further support anticipated at the $0.500 mark where bullish interest may resurface.
Technical Indicators
The hourly MACD for ADA/USD is currently losing momentum within the bearish zone, indicating potential weakness. Meanwhile, the hourly Relative Strength Index (RSI) for ADA/USD has dipped below the 50 level, suggesting a bearish trend.
Major Support Levels
- $0.5780
- $0.5500
Major Resistance Levels
- $0.6060
- $0.6450
