Cardano (ADA) Price Surges 10%, Why Rally Isn’t Over Yet
Cardano’s price started a fresh increase above the $0.37 resistance. ADA rise further if it clears the $0.392 resistance zone. ADA price is gaining bullish momentum above the $0.380 support against the US...
Cardano’s price started a fresh increase above the $0.37 resistance. ADA rise further if it clears the $0.392 resistance zone.
- ADA price is gaining bullish momentum above the $0.380 support against the US dollar.
- The price is trading above $0.380 and the 100 simple moving average (4-hours).
- There was a break above a major bearish trend line with resistance near $0.386 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
- The pair could continue to move up towards the $0.42 resistance zone.
Cardano’s ADA Price Climbs Above Hurdle
After a steady decline, cardano’s price found support near the $0.345 zone. The price traded as low as $0.3454 and recently started a decent increase.
There was a clear move above the $0.365 and $0.370 resistance levels. The bulls pumped the price above the 50% Fib retracement level of the key decline from the $0.4071 swing high to $0.3454 low. Besides, there was a break above a major bearish trend line with resistance near $0.386 on the 4-hours chart of the ADA/USD pair.
ADA price is now trading above $0.380 and the 100 simple moving average (4-hours). It seems to be consolidating above the trend line and $0.38. It is up nearly 10% in a day, unlike bitcoin and ethereum.
On the upside, an immediate resistance is near the $0.392 zone. It is near the 76.4% Fib retracement level of the key decline from the $0.4071 swing high to $0.3454 low. The next major resistance is forming near the $0.407 zone.
Source: ADAUSD on TradingView.com
If there is an upside break above the $0.392 and $0.407 resistance levels, the price could start a strong increase. In the stated case, the price could rise steadily towards the $0.45 level. An intermediate resistance might be $0.42.
Dips Limited in ADA?
If cardano’s price fails to climb above the $0.392 and $0.407 resistance levels, it could start a fresh decline. An immediate support on the downside is near the $0.380 level.
The next major support is near the $0.360 level. A downside break below the $0.360 level could open the doors for a fresh decline towards $0.345. The next major support is near the $0.320 level.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major Support Levels – $0.380, $0.360 and $0.345.
Major Resistance Levels – $0.392, $0.407 and $0.420.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.
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