HomeAltcoin NewsCardano (ADA) Price Analysis: Bulls Are Not Done Just Yet

Cardano (ADA) Price Analysis: Bulls Are Not Done Just Yet

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  • ADA price gained traction after it broke the key $0.0380 resistance against the US Dollar.
  • The price traded towards the $0.0420 resistance and formed a high at $0.0427.
  • There is a key bullish trend line forming with support near $0.0382 on the 4-hours chart (data feed via Kraken).
  • The price could correct in the short term, but dips remain well supported near $0.0400 and $0.0380.

Cardano price is trading in a bullish zone against the US Dollar, similar to bitcoin. ADA price is likely to continue high above $0.0420 and $0.0450 in the near term.

Cardano Price Analysis

After forming a support base near the $0.0350 level, cardano price started a steady rise against the US Dollar. The ADA/USD pair broke the key $0.0380 resistance level to move into a positive zone.

Moreover, the price settled above $0.0380 and the 55 simple moving average (4-hours). Finally, it broke the $0.0400 level and traded towards the $0.0420 resistance area. A high is formed near $0.0427 and the price is currently correcting lower.

It broke the 23.6% Fibonacci retracement level of the recent rally from the $0.0366 low to $0.0427 high. However, there are many supports on the downside near the $0.0400 and $0.0385 levels.

The $0.0400 support also coincides with the 50% Fibonacci retracement level of the recent rally from the $0.0366 low to $0.0427 high. Besides, there is a key bullish trend line forming with support near $0.0382 on the 4-hours chart.

More importantly, the 55 simple moving average (4-hours) is also near the trend line to provide support. Therefore, cardano price is likely to find a strong buying interest near the $0.0400 and $0.0382 levels if it corrects further from the current levels.

Any further losses may perhaps lead the price towards the main $0.0350 support area in the near term. Conversely, the price is likely to continue higher above the $0.0420 and $0.0427 levels.

The next key resistance is near the $0.0450 level, above which the bulls are likely to aim a test of the $0.0500 barrier in the coming days.

Cardano Price
Cardano Price

The chart indicates that ADA price is trading in a nice uptrend above the $0.0380 support. In the short term, there could be a downside correction below $0.0400 and $0.0395. However, as long as the price is above $0.0380, it is likely to climb higher again above the $0.0427 and $0.0450.

Technical Indicators

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

4 hours RSI – The RSI for ADA/USD is currently correcting lower from the 80 level.

Key Support Levels – $0.0400 and $0.0382.

Key Resistance Levels – $0.0420 and $0.0450.

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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