- ADA price is trading in a positive zone above the $0.0450 support against the US Dollar.
- The price is likely to surpass the $0.0520 and $0.0540 resistance levels.
- There is a key contracting triangle forming with resistance near $0.0520 on the 4-hours chart (data feed via Kraken).
- The price could dip a few points, but it is likely to remain well bid above the $0.0450 support.
Cardano price is showing a few positive signs above $0.0480 against the US Dollar, similar to bitcoin. ADA price must climb the $0.0520 resistance level to continue higher in the near term.
Cardano Price Analysis
This past week, cardano price started a downside correction after it failed to clear the $0.0540 resistance zone against the US Dollar. The ADA/USD pair traded as high as $0.0537 and declined below the $0.0480 support.
There was a close below the $0.0480 level and the 55 simple moving average (4-hours). However the price remained well bid above the $0.0440 and $0.0450 support levels. A low is formed near the $0.0426 level and the price is currently rising.
It climbed back above the $0.0480 level and the 55 simple moving average (4-hours). Cardano price is now trading above the 50% Fibonacci retracement level of the downward move from the $0.0537 high to $0.0426 low.
It seems like there is a key contracting triangle forming with resistance near $0.0520 on the 4-hours chart. The triangle resistance is close to the 76.4% Fibonacci retracement level of the downward move from the $0.0537 high to $0.0426 low.
The main resistance is still near the $0.0535 and $0.0540 levels. If there is a successful break above the triangle resistance and a follow through above the $0.0540 level, there are chances of a sustained rise towards the $0.0600 and $0.0620 resistance levels.
Conversely, the price might break correct lower towards the $0.0480 support or the triangle lower trend line. If there is a downside break below the triangle, the price could revisit the $0.0450 and $0.0440 support levels in the near term.
The chart indicates that ADA price is trading in a positive zone above the $0.0480 and $0.0450 levels. Having said that, the price must climb above the $0.0520 resistance to continue higher.
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 sliding towards the 50 level.
Key Support Levels – $0.0480 and $0.0450.
Key Resistance Levels – $0.0520 and $0.0540.