Cardano (ADA) is trying to make a new surge above the $0.4500 resistance area. ADA could gain upward momentum if it settles above the 100 SMA (H4).
- ADA price is slowly moving above the $0.450 area.
- The price is trading below $0.480 and the 100 simple moving average (4-hours).
- There was a break above the major downtrend line with resistance at $0.4580 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
- The pair may gain upward momentum if there is a clear move above $0.470.
Cardano price is trying to increase again
In the past few days, Cardano started a recovery wave from the $0.4180 area, 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 downward move from the high of $0.5227 to the low of $0.4180. Moreover, there was a break above the major downtrend line with resistance at $0.4580 on the 4-hours chart of the ADA/USD pair.
Cardano is now trading below the $0.480 level and the 100 simple moving average (4-hours). On the upside, immediate resistance is near the $0.4650 area and the 100 simple moving average (4-hours).
The first resistance is near $0.470 or the 50% Fibonacci retracement level of the downward move from the high of $0.5227 to the low of $0.4180. The next major resistance could be $0.4980. If there is a close above the $0.4980 resistance level, the price could start a strong rally.
source: ADAUSD on TradingView.com
In the mentioned case, the price may rise towards the $0.5250 area. Any further gains may require a move towards $0.5650.
Another rollback in the ADA?
If Cardano price fails to rise above the $0.470 resistance level and the 100 simple moving average (4-hours), it may start 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 $0.4350 could open the doors to a test of $0.4180. The next major support is located near the $0.3880 level.
Technical indicators
MACD on 4-hour chart – The MACD indicator 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.
Key Support Levels – $0.4500, $0.4350, and $0.4180.
Major resistance levels – $0.4700, $0.4980, and $0.5250.
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