Cardano (ADA) is attempting another increase from the $0.4720 zone. ADA could start a new rally if there is a close above the USD 0.5350 resistance.
- ADA price is moving higher above the $0.500 zone.
- The price is trading above USD 0.512 and the 100 simple moving average (4 hours).
- There was a break above a key bearish trendline with resistance near $0.510 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair could accelerate higher if there is a clear move above USD 0.535 and USD 0.550.
Cardano Price Eyes Fresh increase
After forming a base above the USD 0.4720 level, Cardano started a fresh rise. ADA price could climb above the USD 0.485 and USD 0.500 resistance levels to move into a positive zone like Bitcoin and Ethereum.
There was a break above a key bearish trendline with resistance near $0.510 on the 4-hour chart of the ADA/USD pair. The bulls pushed the pair above the $0.520 resistance zone. However, the bears are now active near the $0.535 resistance zone.
The ADA price is now trading above $0.512 and the 100 simple moving average (4 hours). It is also above the 23.6% Fib retracement level of the recent rise from the $0.4718 swing low to the $0.5354 high.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.535 zone. The first resistance is near USD 0.545 and USD 0.550. The next major resistance could be at $0.565. If there is a close above the USD 0.565 resistance, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.600 region. Further gains could require a move towards $0.620.
Another drop in ADA?
If Cardano price fails to rise above the USD 0.535 resistance level, a fresh decline could begin. The immediate downside support is near the USD 0.520 level.
The next major support is near the $0.5040 level or the 50% Fib retracement level of the recent rise from the $0.4718 swing low to the $0.5354 high. A downside break below the USD 0.5040 level could open the doors for a test of USD 0.485. The next major support is near the $0.4720 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is losing 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 – $0.520, $0.5040 and $0.4720.
Major resistance levels – $0.5350, $0.550 and $0.600.
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