Key Highlights
- ADA price climbed higher recently and broke the $0.0350 and $0.0380 resistances against the US Dollar.
- There was a break above a major bearish trend line with resistance at $0.0380 on the 4-hour chart (data feed via Kraken).
- The price moved into a bullish zone and it could extend gains above $0.0450 and $0.050.
Cardano price rallied recently against the US Dollar and Bitcoin. ADA may continue to move higher towards the $0.0450 and $0.0500 resistance levels.
Cardano Price Analysis
After trading as low as $0.0255, cardano price found a strong support against the US Dollar. The ADA/USD pair formed a support base above $0.0260 and later started a solid upward move. It broke the $0.0300 resistance and the 55 simple moving average (4-hours). More importantly, there was a break above the 50% Fibonacci retracement level of the last decline from the $0.0440 high to $0.0255 low.
Finally, there was a break above a major bearish trend line with resistance at $0.0380 on the 4-hour chart. The price even climbed above the $0.0400 and $0.0410 resistance levels. However, the price failed near $0.0420 and there no test of the $0.0440 swing high. ADA is currently consolidating gains above the broken trend line and $0.0380. On the upside, a break above the $0.0420 and $0.0440 may push the price towards $0.0483. It represents the 1.236 Fib extension level of the last decline from the $0.0440 high to $0.0255 low. Therefore, a break above the $0.0420 resistance could clear the path for more gains towards $0.0450 or even $0.0500.
The chart indicates that ADA price remains in an uptrend above $0.0380. If there is a downside correction below $0.0380, the price may perhaps test the $0.0350 support. Buyers must protect $0.0350 to avoid a reversal towards the $0.0320 level.
4-hours MACD – The MACD for ADA/USD is placed in the bullish zone.
4-hours RSI – The RSI for ADA/USD is well above the 60 level.
Key Support Level – $0.0350
Key Resistance Level – $0.0420
