Cardano price found support near the $0.3050 level. ADA is now recovering higher and could aim for more gains above the USD 0.3360 resistance.
- ADA price started a recovery wave from the $0.3050 level.
- The price is trading above $0.320 and the 100-hourly moving average.
- There was a break above a key bearish trendline with resistance at $0.3245 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could continue to rise if it holds steady above the $0.3200 support zone.
Cardano Price is showing signs of steady recovery
After a big decline, Cardano found support above the $0.30 zone. A low was formed at $0.3050 and the price is now trying to make a recovery wave just like Bitcoin and Ethereum.
The price climbed above the USD 0.3200 and USD 0.3220 resistance levels. There was a move above the 23.6% Fib retracement level of the downward move from the $0.3673 swing high to the $0.3050 low. Furthermore, there was a break above a key bearish trendline with resistance at $0.3245 on the hourly chart of the ADA/USD pair.
Cardano price is now trading above USD 0.4220 and the 100-hourly moving average. On the upside, the price could encounter resistance near the $0.330 zone. First resistance is near $0.3360 or the 50% Fib retracement level of the downward move from the $0.3673 swing high to the $0.3050 low.
The next major resistance could be at $0.3450. If there is a close above the resistance at $0.3450, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.3680 region. Further gains could require a move towards $0.400.
Another drop in ADA?
If Cardano price fails to rise above the USD 0.3360 resistance level, it could trigger a fresh decline. The immediate downside support is near the USD 0.320 level.
The next major support is near the $0.3120 level. A downside break below the USD 0.3120 level could open the doors for a test of USD 0.3050. The next major support is near the $0.3000 level, where the bulls could emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major support levels – USD 0.3200 and USD 0.3050.
Major resistance levels – $0.3360 and $0.3450.