Cardano price started a decent rise above the USD 0.3620 resistance. ADA is now showing positive signs and could rise further towards USD 0.420.
- ADA price started a recovery wave from the $0.3420 level.
- The price is trading above USD 0.380 and the 100-hour moving average.
- A major bullish trendline is forming with support at $0.3810 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could continue to rise if it holds steady above the $0.3800 support zone.
Cardano price starts steady increase
After forming a base above the USD 0.3420 level, Cardano started a decent rise. There was a decent move above the USD 0.3550 and USD 0.3650 resistance levels, like that of Bitcoin and Ethereum.
The bulls even pushed the price above the USD 0.380 resistance. A high was reached at $0.3938 and the price is now consolidating gains. It is above the 23.6% Fib retracement level of the upward move from the $0.3432 swing low to the $0.3938 high.
Cardano price is now trading above $0.380 and the 100-hourly moving average. There is also a major bullish trendline forming with support at $0.3810 on the hourly chart of the ADA/USD pair.
On the upside, the price could encounter resistance near the $0.3900 zone. The first resistance is near $0.3940. The next major resistance could be at USD 0.4200. If there is a close above the USD 0.4200 resistance, the price could start a strong rally. In the said case, the price could rise towards the $0.450 region. Further gains could require a move towards $0.500.
Are dips supported in ADA?
If Cardano price fails to rise above the USD 0.3900 resistance level, it could trigger another decline. The immediate downside support is near the $0.380 level and the trendline.
The next major support is near the $0.3650 level or the 50% Fib retracement level of the upward move from the $0.3432 swing low to the $0.3938 high. A downside break below the USD 0.3650 level could open the doors for a test of USD 0.3550. The next major support is near the $0.3420 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 0.3800 and USD 0.3650.
Major resistance levels – $0.3900 and $0.4200.