Cardano price started to rise nicely above the $0.340 resistance level. ADA is now showing positive signs and may rise further towards $0.380.
- ADA price started a recovery wave from the $0.3220 level.
- The price is trading above the 0.350 level and the 100-hour simple moving average.
- There was a break above a major bearish trend line with resistance at $0.3430 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair may continue moving upwards if it remains stable above the $0.3440 support area.
Cardano price starts to rise steadily
After forming a base above the $0.330 level, Cardano started a decent uptrend. There was a decent move above the $0.3350 and $0.340 resistance levels like Bitcoin and Ethereum.
We also saw a breakout of a major bearish trend line with resistance at $0.3430 on the hourly chart of the ADA/USD pair. The pair also rose above $0.350. A high was formed at $0.3587 and now the price is consolidating its gains.
It is above the 23.6% Fib retracement level of the upward move from the $0.3300 swing low to $0.3587 high. Cardano price is now trading above $0.350 and the 100-hour simple moving average.
On the positive side, the price may face resistance near the $0.3580 area. The first resistance is near the $0.3620 level. The next major resistance could be $0.3650. If there is a close above the $0.3650 resistance, the price could start a strong uptrend. In the mentioned case, the price could rise towards the $0.380 area. Any further gains may require a move towards $0.400.
Are dips supported in ADA?
If Cardano price fails to rise above the $0.3580 resistance level, it may start declining again. Immediate support on the downside is near the $0.350 level.
The next major support is near the $0.3440 level or the 50% Fib retracement level of the upside move from the $0.3300 swing low to $0.3587 high. A downside break below the $0.3440 level could open the door for a test of the $0.330 level. The next major support is near the $0.320 level where bulls could emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
Hourly Relative Strength Index (RSI) – The RSI for ADA/USD is now above the 50 level.
Key support levels – $0.3500 and $0.3440.
Key resistance levels – $0.3580 and $0.3650.