HomeAltcoin NewsCardano (ADA) Price Analysis: Bulls Eyeing Upside Break Above $0.0650

Cardano (ADA) Price Analysis: Bulls Eyeing Upside Break Above $0.0650

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  • ADA price remained supported above $0.0520 and slowly recovered higher against the US Dollar.
  • The price is currently trading above $0.0580 and it seems to be preparing for the next break.
  • There is a major contracting triangle forming with resistance near $0.0620 on the 4-hours chart (data feed via Kraken).
  • The price could either surge above $0.0620 and $0.0650 or it might decline back towards $0.0520.

Cardano price is trading in a contracting range against the US Dollar and bitcoin. ADA price could start a strong upward move if there is a break above $0.0620 and $0.0650.

Cardano Price Analysis

After trading as low as $0.0505, cardano price started a decent recovery against the US Dollar. The ADA/USD pair formed a support base near the $0.0520 and $0.0540 levels. Moreover, there was a break above the $0.0550 and $0.0565 resistance levels. Finally, there was a break above the $0.0600 level and the 55 simple moving average (4-hours). The price spiked towards the $0.0640 level and a swing high was formed near $0.0638.

Recently, the price corrected lower below $0.0600 and traded as low as $0.0566. It is currently trading in a contracting range above $0.0580 and recently climbed above the 50% Fibonacci retracement level of the last slide from the $0.0638 high to $0.0566 low. However, it seems like the bulls are struggling to gain momentum above the $0.0610 and $0.0620 levels.

The 76.4% Fibonacci retracement level of the last slide from the $0.0638 high to $0.0566 low also acted as a resistance. More importantly, there is a major contracting triangle forming with resistance near $0.0620 on the 4-hours chart. If there is an upside break above the $0.0620 resistance, the next hurdle is near the $0.0650 level. If there is a clear break above $0.0650, the price could continue to rise towards $0.0700 and $0.0800.

Conversely, if there is a downside break below $0.0580, the price could resume its decline. An immediate support below $0.0580 is near $0.0565. If there are more losses, the price may perhaps revisit the $0.0540 support level.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is trading with a minor bullish angle above $0.0580 and is preparing for the next major break. If the bulls succeed in gaining traction above $0.0620 and $0.0650, there could be sharp gains in the near term. If not, the price could decline back towards $0.0540 or even $0.0510.

Technical Indicators

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

4 hours RSI – The RSI for ADA/USD is currently above the 50 level, with a flat structure

Key Support Levels – $0.0580 and $0.0540.

Key Resistance Levels – $0.0620 and $0.0650.

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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