Cardano (ADA) is moving higher after the $0.350 support. ADA could rise if there is a clear move above the USD 0.388 and USD 0.395 resistance levels.
- ADA price is moving higher above the pivot level of $0.375.
- The price is trading above USD 0.380 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $0.370 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair could accelerate higher towards the $0.420 level or even $0.450.
Cardano Price Rally could start again soon
After a steady rise, Cardano saw a downward correction from the $0.4090 zone. There was a decline below the USD 0.395 and USD 0.388 support levels, like Bitcoin and Ethereum.
However, the bulls were active near the $0.350 support zone. A low was formed near $0.3494 and the price is now moving higher. There was a break above the USD 0.365 and USD 0.375 resistance levels. The price climbed above the 50% Fib retracement level of the downward move from the $0.4090 swing high to the $0.3494 low.
ADA is now trading above $0.375 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support near $0.370 on the 4-hour chart of the ADA/USD pair.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.3880 zone or the 61.8% Fib retracement level of the downward move from the $0.4090 swing high to the $0.3494 low. The first resistance is near $0.395. 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. Further gains could require a move towards $0.450.
Are dips supported in ADA?
If Cardano price fails to rise above the USD 0.388 resistance level, a downside correction could occur. The immediate downside support is near the $0.370 level and the trendline.
The next major support is near the $0.365 level and the 100-hourly SMA. A downside break below the USD 0.365 level could open the doors for a test of USD 0.350. The next major support is near the USD 0.335 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is gaining strength in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major support levels – $0.370, $0.365 and $0.350.
Major resistance levels – $0.388, $0.395 and $0.420.