Cardano (ADA) Eyes Momentum for Its Next Big Move

Cardano price started a consolidation phase near the $1.00 zone. ADA is holding gains and might aim for a fresh increase above $1.050.

• ADA price started a fresh increase from the $0.8800 zone.
• The price is trading above $0.950 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $1.020 on the hourly chart of the ADA/USD pair (data source from Kraken).
• The pair could start another increase if it clears the $1.050 resistance zone.

Cardano Price Eyes Fresh Surge

In the past few days, Cardano saw a fresh increase above the $0.850 resistance. ADA remained in a positive zone like Bitcoin and Ethereum. There was a move above the $0.880 and $0.9250 resistance levels.

The price surpassed the 50% Fib retracement level of the downward move from the $1.150 swing high to the $0.8696 low. It even cleared the $1.00 level. However, the bears are now active near the $1.050 zone. There is also a key bearish trend line forming with resistance at $1.020 on the hourly chart of the ADA/USD pair.

The trend line is close to the 61.8% Fib retracement level of the downward move from the $1.150 swing high to the $0.8696 low. Cardano price is now trading above $0.950 and the 100-hourly simple moving average.

On the upside, the price might face resistance near the $1.020 zone. The first resistance is near $1.050. The next key resistance might be $1.0840. If there is a close above the $1.0840 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $1.1500 region. Any more gains might call for a move toward $1.20.

Are Dips Supported in ADA?

If Cardano’s price fails to climb above the $1.050 resistance level, it could start another decline. Immediate support on the downside is near the $0.9650 level.

The next major support is near the $0.9350 level. A downside break below the $0.9350 level could open the doors for a test of $0.880. The next major support is near the $0.8450 level where the bulls might emerge.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.

Major Support Levels – $0.9650 and $0.9350.

Major Resistance Levels – $1.0200 and $1.0500.

Source: NewsBTC.com