33.2 C
Dubai
Wednesday, May 29, 2024
HomeAltcoin NewsCardano (ADA) Price Analysis: Recovery Approaching Key Resistance

Cardano (ADA) Price Analysis: Recovery Approaching Key Resistance

Date:

Related stories

  • ADA price is currently recovering from the $0.0184 yearly low against the US Dollar.
  • The price is trading above the $0.0200 and $0.0240 resistance levels.
  • There was a break above a key bearish trend line with resistance near $0.0255 on the 4-hours chart (data feed via Kraken).
  • The price could correct further higher in the short term, but it is likely to face hurdles near $0.0300.

Cardano price is currently staging a decent upside correction against the US Dollar and bitcoin. However, ADA price is likely to struggle near the $0.0300 resistance area.

Cardano Price Analysis

This past week, cardano price extended its decline below the $0.0400 and $0.0300 support levels against the US Dollar. The ADA/USD pair even broke the $0.0240 support and settled well below the 55 simple moving average (4-hours).

Finally, there was a spike below the $0.0200 support and the price traded to a new 2020 low at $0.0184. It is currently correcting higher and trading above the $0.0220 and $0.0240 resistance levels.

Moreover, there was a break above a key bearish trend line with resistance near $0.0255 on the 4-hours chart. The pair is now trading near the 23.6% Fibonacci retracement level of the main drop from the $0.0522 high to $0.0184 low.

An initial resistance on the upside is near the $0.0280 level. The first key resistance for cardano price is near the $0.0300 level (the previous breakdown zone).

Above the $0.0300 resistance, the price could test the $0.0320 resistance and the 55 simple moving average (4-hours). Any further gains could lead the price towards the 50% Fibonacci retracement level of the main drop from the $0.0522 high to $0.0184 low.

Conversely, the price could fail to continue above the $0.0300 resistance area or the 55 SMA. In the stated case, the price is likely to start a fresh decline below the $0.0240 and $0.0220 support levels.

The main support is near the $0.0200 level, below which the bears are likely to aim more losses below the $0.0184 low in the near term.

Cardano Price
Cardano Price

The chart indicates that ADA price is clearly correcting above the $0.0250 resistance area. However, the $0.0300 resistance area is likely to act as a massive hurdle. The price could either convincingly surpass the $0.0300 resistance or it might start a fresh decline to $0.0200.

Technical Indicators

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

4 hours RSI – The RSI for ADA/USD is correcting higher towards the 50 level.

Key Support Levels – $0.0220 and $0.0200.

Key Resistance Levels – $0.0300 and $0.0320.

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.

Subscribe

Latest stories