Cardano (ADA) is struggling to break above the $0.500 resistance zone and start a new rally. ADA needs to stay above the $0.480 support level to initiate a proper upward move.
- ADA price is struggling to gain bullish momentum above the $0.50 area.
- The price is trading above $0.480 and the 100-hour simple moving average.
- On the hourly chart of the ADA/USD pair, there is a major bullish trend line forming with support near $0.480 (data source from Kraken).
- A close above $0.500 could give the pair some bullish momentum.
Cardano price remains supported
Over the past few days, Cardano began a recovery in the $0.4620 area, but lagged behind Bitcoin and Ethereum. ADA price broke the $0.4750 and $0.480 levels, moving into near-term bullish territory.
The price surged above $0.50 but failed to continue rising. A high was formed at $0.510 and there was a recent downward correction. The price fell below the $0.4980 support. It fell below the 23.6% Fib retracement level from the $0.4614 swing low to the $0.510 low.
Cardano is currently trading above $0.480 and the 100-hour simple moving average. On the hourly chart of the ADA/USD pair, there is also a major bullish trend line forming with support near $0.480. The trend line is close to the 61.8% Fib retracement level rising from the $0.4614 swing low to the $0.510 low.
Meanwhile, immediate resistance is located near $0.4980. The first resistance is near $0.510. The next major resistance could be at $0.5250. If the price closes above the $0.5250 resistance, the price could begin a strong rally. If indicated, the price may rise to the $0.5450 region. Any more profits may require a move to $0.5650.
Another decline in ADA?
If Cardano’s price fails to break above the $0.4980 resistance level, another decline could begin. Immediate support for the downside is near the $0.450 level.
The next major support is near the $0.480 level. A break below the $0.480 level could open the door to a test of $0.4620. The next major support is near the $0.450 level.
technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for ADA/USD is now below the 50 level.
Key support levels – $0.4850, $0.4800 and $0.4620.
Key resistance levels – $0.4980, $0.5100, $0.5250.