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HomeAltcoin NewsCardano (ADA) Price Could Rally If It Breaks $0.0850

Cardano (ADA) Price Could Rally If It Breaks $0.0850

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  • ADA price corrected lower recently below the $0.0900 and $0.0850 supports against the US Dollar.
  • The price traded close to the $0.0760 level and recently corrected above $0.0800.
  • There is a significant bearish trend line in place with resistance at $0.0840 on the 4-hours chart (data feed via Kraken).
  • The price must break the $0.0840 and $0.0850 resistance levels to start a strong uptrend.

Cardano price is currently trading below key resistances against the US Dollar and bitcoin. ADA is likely to accelerate higher if it clears the $0.0850 resistance zone.

Cardano Price Analysis

After trading towards the $0.1020 level, cardano price started a major downside correction against the US Dollar. The ADA/USD pair declined below the $0.0950 and $0.0920 support levels. Later, a swing high was formed at $0.0926 and the price declined sharply below $0.0850. There was a close below the $0.0850 level and the 55 simple moving average (4-hours). The price even broke the $0.0800 support and tested the $0.0760 level.

A new swing low was formed at $0.0768 and the price recently corrected higher. It broke the $0.0800 level and the 23.6% Fibonacci retracement level of the recent drop from the $0.0926 high to $0.0768 low. However, the upside move was capped by the $0.0850 level and the 55 simple moving average (4-hours). The price also failed near the 50% Fibonacci retracement level of the recent drop from the $0.0926 high to $0.0768 low. More importantly, there is a significant bearish trend line in place with resistance at $0.0840 on the 4-hours chart.

Therefore, cardano price must break the $0.0840 and $0.0850 resistance levels to start a fresh increase. The next main resistance above $0.0850 is near the $0.0925 swing high. An intermediate resistance is $0.0889 and the 76.4% Fibonacci retracement level of the recent drop from the $0.0926 high to $0.0768 low. If the price fails to clear the $0.0840 and $0.0850 resistance levels, it could resume its decline. An initial support is at $0.0805 and $0.0800.

Cardano Price Analysis ADA Chart

The chart indicates that ADA price is facing a strong resistance near the $0.0840 and $0.0850 levels. A successful close above $0.0850 is likely to open the doors for a solid trend towards the $0.1000 level. Conversely, a break below the $0.0800 support may call for more losses. The next major support is near the $0.0760 and $0.0755 levels.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is still placed in the bearish zone, with a few positive signs.

4 hours RSI – The RSI for ADA/USD is well below the 50 level and it might test the 40 level before it could rise.

Key Support Levels – $0.0805 and $0.0800.

Key Resistance Levels – $0.0840 and $0.0850.

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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