The price of Cardano started a decent rise above the $0.3620 resistance. ADA is now showing positive signs and may rise to $0.420.
- ADA price started a wave of recovery from the level of $0.3420.
- The price is trading above $0.380 and the 100-hour simple moving average.
- There is an important trend line forming with support at $0.3810 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair can continue to rise if it remains stable above the $0.3800 support area.
Cardano Price Begins Strong Rise
After making 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 for both 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 covering gains. It is above the 23.6% Fib retracement level of the upward move from the $0.3432 low to $0.3938 high.
Cardano price is now trading above $0.380 and the 100-hour simple moving average. There is also a major bullish trendline forming with support at $0.3810 on the hourly chart of the ADA/USD pair.
On the other hand, the price may face resistance near the $0.3900 area. Initial resistance is near $0.3940. The next key resistance would be $0.4200. If there is a close above the resistance of $0.4200, the price can start a strong rally. In the mentioned scenario, the price could rise to the $0.450 area. Any additional gains would need to move to $0.500.
Are Dips ADA supported?
If the price of Cardano fails to rise above the resistance level of $0.3900, it can start another decline. Immediate support on the downside is near the $0.380 level and trend line.
The next major support is near the $0.3650 level or the 50% Fib retracement level of the upside from the $0.3432 turn low to the $0.3938 high. A break below the $0.3650 level could open the doors to a test of $0.3550. The next major support is near the $0.3420 level where the bulls may emerge.
Technical References
Hourly MACD – MACD of ADA/USD is gaining momentum in bullish territory.
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.