Cardano (ADA) is attempting a fresh rally above the $0.4500 resistance zone. ADA could gain bullish momentum if it stabilizes above the 100 SMA (H4).
- ADA price is slowly rising above the $0.450 area.
- The price is trading below $0.480 and the 100 simple moving average (4-hours).
- A breakout occurred above the main bearish trend line with resistance at $0.4580 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
- If there is a clear move above $0.470, the pair could gain bullish momentum.
Cardano price attempts a new rise
Over the past few days, Cardano has begun a recovery in the same $0.4180 area as Bitcoin and Ethereum. ADA price broke the $0.4350 and $0.4420 levels, moving into near-term bullish territory.
There was a move above the 23.6% Fib retracement level, moving downward from the $0.5227 swing high to the $0.4180 low. Moreover, the ADA/USD pair broke the key bearish trend line at $0.4580, which is the resistance level on the 4-hours chart.
Cardano is currently trading below $0.480 and the 100 simple moving average (4-hours). On the positive side, immediate resistance is located near the $0.4650 area and the 100 simple moving average (4-hours).
The first resistance is near $0.470 or the 50% Fib retracement level for a downside move from the $0.5227 swing high to the $0.4180 low. The next major resistance could be at $0.4980. If the price closes above the $0.4980 resistance line, the price could begin a strong rally.
Source: ADAUSD on TradingView.com
If indicated, the price may rise to the $0.5250 region. Any more profits may require a move to $0.5650.
Another decline in ADA?
If Cardano’s price fails to rise above the $0.470 resistance level and the 100 simple moving average (4-hours), another decline could begin. Immediate support for the downside is near the $0.450 level.
The next major support is near the $0.4350 level. A break below the $0.4350 level could open the door to a test of $0.4180. The next major support is near the $0.3880 level.
technical indicators
4-Hour MACD – The MACD for ADA/USD is losing momentum in bearish territory.
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.
Key resistance levels – $0.4700, $0.4980 and $0.5250.
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