Key Highlights
- ADA price traded higher recently and tested the $0.0500 resistance against the US Dollar.
- There is a significant bullish trend line in place with support at $0.0385 on the 4-hours chart (data feed via Kraken).
- The price is likely to break the $0.0450 resistance to start a fresh upward move towards $0.0500.
Cardano price is placed nicely in an uptrend against the US Dollar and Bitcoin. ADA may continue to move higher towards $0.0450, $0.0500 and $0.0520.
Cardano Price Analysis
This past week, there was a solid bullish wave above the $0.0400 resistance in cardano price against the US Dollar. The ADA/USD pair broke the $0.0450 resistance and settled above the 55 simple moving average (4-hours). The price traded close to the $0.0500 resistance, where sellers emerged. A high was formed at $0.0494 before the price started a downside correction.
It moved below the $0.0450 support and the 50% Fibonacci retracement level of the last wave from the $0.0270 low to $0.0494 high. However, the declined was protected by the $0.0360 support and the price bounced back. Besides, there was a test of the 61.8% Fibonacci retracement level of the last wave from the $0.0270 low to $0.0494 high. More importantly, there is a significant bullish trend line in place with support at $0.0385 on the 4-hour chart. The price is currently trading nicely above the $0.0380 support and the trend line. On the upside, a break above the $0.0450 resistance may clear the path for more gains. The next main hurdle for buyers is near the $0.0500 level.
The chart indicates that ADA price is following a nice bullish path above $0.0360 and $0.0380. As long as there is no break below $0.0360, there are high chances of a break above $0.0450. If not, the price may decline back towards the $0.0280 support.
4-hours MACD – The MACD for ADA/USD is slightly in the bearish zone.
4-hours RSI – The RSI for ADA/USD is just above the 50 level.
Key Support Level – $0.0380
Key Resistance Level – $0.0450
