Cardano (ADA) is gaining pace above the USD 0.60 resistance. ADA could rise further if there is a clear move above the USD 0.685 and USD 0.700 resistance levels.
- The ADA price is moving higher above the $0.600 pivot level.
- The price is trading above USD 0.620 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $0.6020 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair could accelerate higher towards the $0.800 level or even $1.00 in the coming weeks.
Cardano Price starts new rally
After forming a base above the USD 0.500 level, Cardano started a steady rise. There was a break above the USD 0.550 and USD 0.600 resistance levels, outperforming Bitcoin and Ethereum.
ADA overcame many hurdles and even peaked above $0.680. A new multi-week high was formed near $0.6802 and the price is now consolidating gains. There was a small decline below the 23.3% Fib retracement level of the upward move from the $0.5220 swing low to the $0.6802 high.
ADA is now trading above $0.500 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support near $0.6020 on the 4-hour chart of the ADA/USD pair. The trendline is close to the 50% Fib retracement level of the upward move from the $0.5220 swing low to the $0.6802 high.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.660 zone. The first resistance is near $0.685. The next major resistance could be at USD 0.700. If there is a close above the USD 0.700 resistance, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.80 region. Further gains could require a move towards $1.00.
Are dips restricted in ADA?
If Cardano price fails to rise above the USD 0.685 resistance level, a downside correction could occur. The immediate downside support is near the $0.6200 level.
The next major support is near the $0.600 level and trendline. A downside break below the USD 0.600 level could open the doors for a test of USD 0.5550. The next major support is near the $0.5220 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 – USD 0.620, USD 0.600 and USD 0.555.
Major resistance levels – $0.685, $0.700 and $0.800.
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