HomeAltcoin NewsCardano (ADA) Price Analysis: Bullish Breakout Above $0.42 Likely

Cardano (ADA) Price Analysis: Bullish Breakout Above $0.42 Likely

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  • ADA price formed a strong support above the $0.3000 and $0.3100 levels against the US Dollar.
  • The price broke the $0.3900 resistance and settled above the 55 simple moving average (4-hours).
  • There was a break above a crucial contracting triangle with resistance near $0.3600 on the 4-hours chart (data feed via Kraken).
  • The price is likely to continue high above $0.4200 as long as it is above the $0.3880 support.

Cardano price is holding gains above $0.3800 against the US Dollar, while bitcoin is consolidating. ADA price is likely to accelerate higher above $0.4200 and $0.4500.

Cardano Price Analysis

Cardano price remained well bid above the main $0.3000 support zone against the US Dollar. The ADA/USD pair also formed a strong support base near $0.3100 before starting a steady increase.

The last swing low was formed near $0.3326 before the price surged higher. It broke the $0.3500 and $0.3800 resistance levels. It even broke the $0.4000 barrier and settled well above the 55 simple moving average (4-hours).

Moreover, there was a break above a crucial contracting triangle with resistance near $0.3600 on the 4-hours chart. It traded as high as $0.4311 and it is currently correcting gains. It already spiked below the $0.4100 support level.

There was also a break below the 23.6% Fib retracement level of the recent upward move from the $0.3326 swing low to $0.4311 high. However, the price remained well bid above the $0.3900 and $0.3880 levels.

It seems like there is a strong support forming near the $0.3880 level (the last breakout zone). The next major support is near the $0.3820 level. It is close to the 50% Fib retracement level of the recent upward move from the $0.3326 swing low to $0.4311 high.

Any more losses could lead the price towards the $0.3500 support level and the 55 simple moving average (4-hours). Conversely, there are chances of more gains above the $0.4200 and $0.4300 resistance levels. The next major resistance could be near the $0.4500 level.

Cardano (ADA) Price
Cardano (ADA) Price

The chart indicates that ADA price is clearly trading nicely above $0.3880 and the 55 simple moving average (4-hours). Overall, the price is likely to continue high above $0.4200 as long as it is above the $0.3880 support in the near term.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is losing pace in the bullish zone.

4 hours RSI – The RSI for ADA/USD is currently well above the 70 level.

Key Support Levels – $0.3880 and $0.3820.

Key Resistance Levels – $0.4200 and $0.4500.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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