Cardano (ADA) is struggling to start a new surge above the $0.500 resistance area. ADA should remain above the $0.480 support level to start a good upward movement.
- ADA price is struggling to gain upward momentum above the $0.50 area.
- The price is trading above $0.480 and the 100 hourly simple moving average.
- There is a major uptrend line forming with support near $0.480 on the hourly chart of the ADA/USD pair (data source from Kraken).
- It is possible that the pair will gain upward momentum if there is a close above $0.500.
Cardano price remains supported
In the past few days, Cardano started a recovery wave from the $0.4620 area, but lagged behind Bitcoin and Ethereum. ADA price broke the $0.4750 and $0.480 levels to move into a short-term bullish zone.
The price even rose above $0.50, but failed to continue higher. The high was formed at $0.510, and recently there was a downward correction. The price fell below the support level of $0.4980. It fell below the 23.6% Fibonacci retracement level of the upward move from the $0.4614 swing low to the $0.510 swing low.
Cardano is now trading above $0.480 and the 100 hourly simple moving average. There is also a major uptrend line forming with support near $0.480 on the hourly chart of the ADA/USD pair. The trend line is close to the 61.8% Fibonacci retracement level of the upward move from the $0.4614 swing low to the $0.510 swing low.
On the upside, immediate resistance is near the $0.4980 area. The first resistance is located near $0.510. The next major resistance could be $0.5250. If there is a close above the $0.5250 resistance level, the price could start a strong rally. In the mentioned case, the price may rise towards the $0.5450 area. Any further gains may require a move towards $0.5650.
Another rollback in the ADA?
If Cardano price fails to rise above the $0.4980 resistance level, it may start another decline. Immediate support on the downside is near the $0.450 level.
The next major support is near the $0.480 level. A downside break below $0.480 could open the doors to a test of $0.4620. The next major support is near the $0.450 level.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Key Support Levels – $0.4850, $0.4800, and $0.4620.
Major resistance levels – $0.4980, $0.5100, and $0.5250.
