Cardano price started to rise steadily above the $0.3850 resistance level. ADA is now trying to gain bullish momentum by closing above $0.40.
- ADA price is on an upward trend again, trading above $0.3880.
- The price is trading above $0.390 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support at $0.3935 on the hourly chart of the ADA/USD currency pair (data source: Kraken).
- This pair could gain bullish momentum if it closes above the $0.40 area.
Cardano price expected to rise steadily
Over the past few sessions, Cardano has started a significant uptrend from the $0.3350 support zone. Like Bitcoin and Ethereum, ADA has broken above the $0.350 and $0.3650 resistance levels.
It broke the $0.3880 resistance and tested $0.4050. A high was formed at $0.4047 and the price is currently consolidating gains. It moved below the $0.400 and $0.3980 support levels. The price tested the 23.6% Fib rectification level from the $0.3577 swing low to the $0.4047 high.
The ADA price is currently trading above $0.380 and the 100-hourly simple moving average. There is also a support line forming at $0.3935 on the hourly chart of the ADA/USD pair, forming a major bullish trend line.
If there is another uptrend, the price may face resistance near the $0.400 area. The first resistance is near $0.4050. The next major resistance could be $0.4250. If there is a close above the $0.4250 resistance, the price may start a strong rally. If so, the price may rise to the $0.450 area. Further uptrend may require a move to $0.4650.
ADA Downward Correction?
If Cardano price fails to break above the $0.400 resistance level, a downward correction may begin. Immediate support for the decline is near the $0.3960 level and the trend line.
The next major support is near the $0.3810 level and the 50% Fibonacci retracement level of the uptrend from the $0.3577 swing low to the $0.4047 high. A decline below the $0.3810 level could open the door for a test of $0.3750. The next major support is near the $0.350 level.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in a bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently above the 50 level.
Key support levels – $0.3960 and $0.3810.
Key resistance levels – $0.4000 and $0.4050.