- ADA price is showing positive signs and trading above the $0.0950 support against the US Dollar.
- The price is facing hurdles near $0.1000, and testing the 55 simple moving average (4-hours).
- There is a key contracting triangle forming with resistance near $0.1000 on the 4-hours chart (data feed via Kraken).
- The price is likely to rally and accelerate higher if it clears the main $0.1000 resistance.
Cardano price is recovering and approaching a major breakout against the US Dollar, similar to bitcoin. ADA price must clear $0.1000 for a sustained move higher.
Cardano Price Analysis
Cardano price remained well bid above the key $0.0900 support zone against the US Dollar. The ADA/USD pair traded as low as $0.0895 and recently started a fresh upward move.
There was a break above the $0.0935 and $0.0950 resistance levels. The price even climbed above the 23.6% Fibonacci retracement level of the downward move from the $0.1065 high to $0.0895 low.
It is now trading near the $0.0980 resistance level and the 55 simple moving average (4-hours). The 50% Fibonacci retracement level of the downward move from the $0.1065 high to $0.0895 low is also acting as a resistance for the bulls.
More importantly, it seems like there is a key contracting triangle forming with resistance near $0.1000 on the 4-hours chart. The triangle resistance is important, above which the bulls are likely to push the price further higher above $0.1020.
The next major resistance is near the $0.1050. Any further gains could lead the price towards the $0.1120 and $0.1150 levels in the coming sessions. The next key hurdle for the bulls could be $0.1200.
Conversely, cardano price might struggle to clear the $0.1000 resistance. An initial support is near the triangle lower trend line at $0.0960. If there is a downside break below the triangle support, the price is likely to continue lower towards the $0.0950 support zone. Any further losses could push the price towards the key $0.0900 support level in the near term.
The chart indicates that ADA price is clearly approaching a major breakout zone with a significant hurdle near $0.1000. Overall, the price is likely to rally and accelerate higher if it clears the main $0.1000 resistance.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is slowly gaining pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is currently rising and it is above the 50 level.
Key Support Levels – $0.0960 and $0.0950.
Key Resistance Levels – $0.1000 and $0.1050.
