Cardano (ADA) is gaining pace above the USD 0.350 resistance. ADA is showing heavy bullish signals and could rise towards USD 0.400 or even USD 0.420.
- ADA price outperformed Bitcoin and rose above the $0.350 resistance.
- The price is trading above USD 0.350 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $0.3505 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair could accelerate higher towards the $0.400 level or even $0.420.
Cardano Price Rally seems far from over
In recent days, Cardano has seen a decent rise against the $0.2850 support. It is up over 20% and broke many hurdles near the $0.350 resistance zone, outperforming Bitcoin and Ethereum.
The upward move was such that the price rose towards $0.3750. A high was formed around $0.3755 before a downward correction occurred. The price fell below the $0.3550 support. It peaked below the 23.6% Fib retracement level of the upward move from the $0.2845 swing low to the $0.3755 high.
However, the bulls were active above the $0.3400 zone. There is also a major bullish trendline forming with support near $0.3505 on the 4-hour chart of the ADA/USD pair.
Source: ADAUSD on TradingView.com
ADA is now trading above USD 0.350 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.3750 zone. The first resistance is near $0.380. The next major resistance could be at USD 0.400. If there is a close above the USD 0.400 resistance, the price could extend its rally. In the mentioned case, the price could rise towards the $0.420 region.
Are dips restricted in ADA?
If Cardano price fails to rise above the USD 0.3750 resistance level, a downside correction could occur. The immediate downside support is near the $0.3550 level.
The next major support is near the $0.350 level and trendline. A downside break below the $0.350 level could open the doors for a test of the 50% Fib retracement level of the upward move from the $0.2845 swing low to the $0.3755 high at $0.3300. The next major support is near the $0.3080 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major support levels – $0.355, $0.350 and $0.330.
Major resistance levels – $0.375, $0.400 and $0.420.