HomeAltcoin NewsCardano (ADA) Price Analysis: Bulls Eyeing Upside Break Above $0.05

Cardano (ADA) Price Analysis: Bulls Eyeing Upside Break Above $0.05

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  • ADA price is trading nicely in a bullish zone above the $0.0450 pivot level against the US Dollar.
  • It is now approaching a major resistance zone near the $0.0495 and $0.0500 levels.
  • There is a major contracting triangle forming with resistance near $0.0495 on the 4-hours chart (data feed via Kraken).
  • The price could either rally above the $0.0500 resistance or correct towards the $0.0400 support.

Cardano price is currently consolidating below key resistances against the US Dollar, similar to bitcoin. ADA price must climb the $0.0500 resistance level to continue higher in the near term.

Cardano Price Analysis

After a strong rally, cardano price even extended its rise above the $0.0500 resistance zone against the US Dollar. However, the ADA/USD pair failed to continue above the $0.0540 and $0.0550 resistance levels.

As a result, there was a downside correction below the $0.0520 and $0.0500 levels. The price even traded below $0.0480 and the 55 simple moving average (4-hours), but it found a strong support near the $0.0460 level.

A low is formed near the $0.0460 level and the price is back above the 55 simple moving average (4-hours). It is trading above the 50% Fibonacci retracement level of the downward move from the $0.0518 high to $0.0460 low.

On the upside, the price is now approaching a major resistance zone near the $0.0495 and $0.0500 levels. Moreover, there is a major contracting triangle forming with resistance near $0.0495 on the 4-hours chart.

The 61.8% Fibonacci retracement level of the downward move from the $0.0518 high to $0.0460 low is also near $0.0495. If cardano price breaks the triangle resistance, it could continue to rise above the $0.0500 level.

The next key resistance is near the $0.0520 level, above which the price is likely to accelerate higher towards the $0.0550 level in the coming sessions. Any further gains could lead the price towards the $0.0580 and $0.0600 levels.

Conversely, the price might break the triangle support at $0.0475 and revisit the $0.0460 support. The next major support is near $0.0435, below which the bears are likely to aim a test of the $0.0400 support.

Cardano Price
Cardano Price

The chart indicates that ADA price is trading in a positive zone above the $0.0475 and $0.0460 levels. Having said that, the price must climb above the $0.0500 resistance to continue higher.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is currently struggling to gain momentum in the bullish zone.

4 hours RSI – The RSI for ADA/USD is just below the 50 level.

Key Support Levels – $0.0475 and $0.0460.

Key Resistance Levels – $0.0500 and $0.0520.

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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