Cardano (ADA) is attempting a fresh rally above the $0.4500 resistance zone. ADA could gain bullish momentum if it settles above the 100 SMA (H4).
- ADA price is slowly moving above the $0.450 zone.
- The price is trading below $0.480 and the 100 simple moving average (4-hours).
- There was a break above a key downtrend line with resistance at $0.4580 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could gain bullish momentum if there is a clear move above $0.470.
Cardano price attempts a new increase
In recent days, Cardano has started a wave of recovery from the $0.4180 zone, like Bitcoin and Ethereum. ADA price broke the $0.4350 and $0.4420 levels to move into a short-term bullish zone.
There was a move above the 23.6% Fib retracement level of the downside move from the swing high of $0.5227 to the low of $0.4180. Additionally, there was a break above a key downtrend line with resistance at $0.4580 on the 4-hour chart of the ADA/USD pair.
Cardano is now trading below $0.480 and the 100 simple moving average (4-hourly). On the upside, immediate resistance is near the $0.4650 zone and the 100 simple moving average (4-hourly).
First resistance is near $0.470 or the 50% Fib retracement level of the downside move from the swing high $0.5227 to low $0.4180. The next key resistance could be $0.4980. If a close occurs above the $0.4980 resistance, the price could begin a strong rally.
Source: ADAUSD on TradingView.com
In the given case, the price could rise towards the $0.5250 region. Any further gains may require a move towards $0.5650.
Another decline in the ADA?
If Cardano price fails to break above the $0.470 resistance level and the 100 simple moving average (4-hours), it may begin another decline. Immediate support on the downside is near the $0.450 level.
The next major support is near the $0.4350 level. A downside break below the $0.4350 level could open the doors for a test of $0.4180. The next major support is near the $0.3880 level.
Technical indicators
4-Hour MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major support levels: $0.4500, $0.4350 and $0.4180.
Major resistance levels: $0.4700, $0.4980 and $0.5250.
Disclaimer: The item is provided for educational purposes only. It does not represent NewsBTC’s views on whether to buy, sell or hold investments and of course investing involves risk. You are advised to conduct your own research before making any investment decisions. Use the information provided on this website entirely at your own risk.
