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Cardano (ADA) Jumps 10%: Is a $0.50 Retest on the Horizon?
Cardano price started a decent increase above the $0.3620 resistance. ADA is now showing positive signs and might rise further toward $0.420.
- ADA price started a recovery wave from the $0.3420 level.
- The price is trading above $0.380 and the 100-hourly simple moving average.
- There is a key bullish trend line forming with support at $0.3810 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could continue to move up if it remains stable above the $0.3800 support zone.
Cardano Price Starts Steady Increase
After forming a base above the $0.3420 level, Cardano started a decent increase. There was a decent move above the $0.3550 and $0.3650 resistance levels like Bitcoin and Ethereum.
The bulls even pushed the price above the $0.380 resistance. A high was formed at $0.3938 and the price is now consolidating gains. It is above the 23.6% Fib retracement level of the upward move from the $0.3432 swing low to the $0.3938 high.
Cardano price is now trading above $0.380 and the 100-hourly simple moving average. There is also a key bullish trend line forming with support at $0.3810 on the hourly chart of the ADA/USD pair.
On the upside, the price might face resistance near the $0.3900 zone. The first resistance is near $0.3940. The next key resistance might be $0.4200. If there is a close above the $0.4200 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.450 region. Any more gains might call for a move toward $0.500.
Are Dips Supported in ADA?
If Cardano’s price fails to climb above the $0.3900 resistance level, it could start another decline. Immediate support on the downside is near the $0.380 level and the trend line.
The next major support is near the $0.3650 level or the 50% Fib retracement level of the upward move from the $0.3432 swing low to the $0.3938 high. A downside break below the $0.3650 level could open the doors for a test of $0.3550. The next major support is near the $0.3420 level where the bulls might emerge.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major Support Levels – $0.3800 and $0.3650.
Major Resistance Levels – $0.3900 and $0.4200.