Cardano (ADA) Price Surges 10%, Why Rally Isn’t Over Yet

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Cardano’s price started a fresh increase above the $0.37 resistance. ADA rise further if it clears the $0.392 resistance zone.

  • ADA price is gaining bullish momentum above the $0.380 support against the US dollar.
  • The price is trading above $0.380 and the 100 simple moving average (4-hours).
  • There was a break above a major bearish trend line with resistance near $0.386 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
  • The pair could continue to move up towards the $0.42 resistance zone.

Cardano’s ADA Price Climbs Above Hurdle

After a steady decline, cardano’s price found support near the $0.345 zone. The price traded as low as $0.3454 and recently started a decent increase.

There was a clear move above the $0.365 and $0.370 resistance levels. The bulls pumped the price above the 50% Fib retracement level of the key decline from the $0.4071 swing high to $0.3454 low. Besides, there was a break above a major bearish trend line with resistance near $0.386 on the 4-hours chart of the ADA/USD pair.

ADA price is now trading above $0.380 and the 100 simple moving average (4-hours). It seems to be consolidating above the trend line and $0.38. It is up nearly 10% in a day, unlike bitcoin and ethereum.

On the upside, an immediate resistance is near the $0.392 zone. It is near the 76.4% Fib retracement level of the key decline from the $0.4071 swing high to $0.3454 low. The next major resistance is forming near the $0.407 zone.

Cardano (ADA) Price

Source: ADAUSD on TradingView.com

If there is an upside break above the $0.392 and $0.407 resistance levels, the price could start a strong increase. In the stated case, the price could rise steadily towards the $0.45 level. An intermediate resistance might be $0.42.

Dips Limited in ADA?

If cardano’s price fails to climb above the $0.392 and $0.407 resistance levels, it could start a fresh decline. An immediate support on the downside is near the $0.380 level.

The next major support is near the $0.360 level. A downside break below the $0.360 level could open the doors for a fresh decline towards $0.345. The next major support is near the $0.320 level.

Technical Indicators

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

4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.

Major Support Levels – $0.380, $0.360 and $0.345.

Major Resistance Levels – $0.392, $0.407 and $0.420.

Source: NewsBTC

#ADA, #Adausd, #ADAUSDT, #Cardano