Cardano (ADA) Price Analysis: Dips Could Be Limited Below $1.20

ADA price started a fresh increase above the $1.20 resistance against the US Dollar.
The price is now trading well above $1.15 and the 55 simple moving average (4-hours).
There was a break below a key bullish trend line with support near $1.24 on the 4-hours chart (data feed via Bitfinex).
The price is correcting gains, but the bulls are likely to remain active near $1.20 and $1.15.

Cardano price started a decent recovery above $1.20 against the US Dollar, similar to bitcoin. ADA price topped near $1.40 and it is now correcting gains.

Cardano Price Analysis

Recently, cardano price started a strong increase from the $1.02 support zone against the US Dollar. The ADA/USD pair broke the key $1.20 resistance to move into a positive zone.

The price even surged above the $1.25 level and the 55 simple moving average (4-hours). However, the bears were active near the $1.40 level. A high was formed near $1.39 and the price is now correcting gains. It broke the $1.35 and $1.30 support levels.

There was a break below the 23.6% Fib retracement level of the upward move from the $1.02 swing low to $1.39 high. There was also a break below a key bullish trend line with support near $1.24 on the 4-hours chart.

The pair is now trading near the $1.20 support zone. It is close to the 50% Fib retracement level of the upward move from the $1.02 swing low to $1.39 high. The next major support on the downside is near the $1.18 level and the 55 simple moving average (4-hours).

The main breakdown support is near the $1.15 level. On the upside, an initial resistance is near the $1.25 level. The first major resistance is now near the $1.30 level. A clear close above the $1.30 level could spark a fresh move towards the $1.40 level in the coming sessions. The next major resistance sits near the $1.50 level.

Cardano (ADA) Price

The chart indicates that ADA price is clearly trading well above $1.20 and the 55 simple moving average (4-hours). Overall, the price is correcting gains, but the bulls are likely to remain active near $1.20 and $1.15.