- ADA price is trading in a solid uptrend above the $0.0430 support resistance against the US Dollar.
- The price is likely to accelerate gains above the $0.0500 resistance in the near term.
- There is a major ascending channel forming with support near $0.0435 on the 4-hours chart (data feed via Kraken).
- The price could surge towards $0.0550 and $0.0650 if it settles above the $0.0500 resistance area.
Cardano price is showing a lot of positive signs against the US Dollar, similar to bitcoin. ADA price remains well supported and it seems like the bulls are eyeing a break above $0.0500.
Cardano Price Analysis
In the past few days, cardano price followed a nice bullish path above the $0.0400 level against the US Dollar. The ADA/USD pair broke the key $0.0432 resistance level to move into a positive zone.
Furthermore, there was a close above the $0.0450 level and the 55 simple moving average (4-hours). The price traded to a new 2020 high at $0.0468 and it is currently consolidating gains.
An initial support is near the $0.0450 level. Besides, the 50% Fibonacci retracement level of the recent wave from the $0.0413 low to $0.0468 high is also near the $0.0440 level to provide support.
The next major support is near the $0.0435 level. More importantly, there is a major ascending channel forming with support near $0.0435 on the 4-hours chart. The channel support coincides with the 61.8% Fibonacci retracement level of the recent wave from the $0.0413 low to $0.0468 high.
Finally, the 55 simple moving average (4-hours) is positioned near the $0.0420 level. If there is a downside break below the trend line and the $0.0420 support, there could be a sharp decline.
In the mentioned bearish case, the price could even hit the $0.0400 support. Conversely, the price is likely to continue higher above the $0.0450 and $0.0465 resistance levels.
The next key resistance is near the $0.0500 level, above which the price is likely to accelerate higher. The next key target on the upside could be $0.0650.
The chart indicates that ADA price is trading with a positive bias above the $0.0432 and $0.0420 support levels. In the short term, there could be a downside correction, but the price is likely to continue higher above $0.0500 in the near term.
4 hours MACD – The MACD for ADA/USD is slowly losing momentum in the bullish zone.
4 hours RSI – The RSI for ADA/USD is currently well above the 50 level.
Key Support Levels – $0.0450 and $0.0432.
Key Resistance Levels – $0.0465 and $0.0500.