Cardano price started a steady rise above the USD 0.3850 resistance. ADA is now targeting a close above $0.40 to gain bullish momentum.
- The ADA price started a new increase and traded above $0.3880.
- The price is trading above $0.390 and the 100-hour moving average.
- A major bullish trendline is forming with support at $0.3935 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could gain bullish momentum if it closes above the $0.40 zone.
Cardano Price eyes steady increase
Over the past few sessions, Cardano started a decent rise from the $0.3350 support zone. ADA climbed above the USD 0.350 and USD 0.3650 resistance levels, like Bitcoin and Ethereum.
It even managed to overcome the USD 0.3880 resistance and tested USD 0.4050. It reached a high at $0.4047 and the price is now consolidating gains. There was a move below the USD 0.400 and USD 0.3980 support levels. The price tested the 23.6% Fib retracement level of the upward move from the $0.3577 swing low to the $0.4047 high.
The ADA price is now trading above $0.380 and the 100-hour moving average. There is also a major bullish trendline forming with support at $0.3935 on the hourly chart of the ADA/USD pair.
If another upward move occurs, the price may encounter resistance near the $0.400 zone. The first resistance is near $0.4050. The next major resistance could be at USD 0.4250. If there is a close above the USD 0.4250 resistance, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.450 region. Further gains could require a move towards $0.4650.
Disadvantage correction in ADA?
If Cardano price fails to rise above the USD 0.400 resistance level, a downward correction could occur. The immediate downside support is near the $0.3960 level and the trendline.
The next major support is near the $0.3810 level and the 50% Fib retracement level of the upward move from the $0.3577 swing low to the $0.4047 high. A downside break below the USD 0.3810 level could open the doors for a test of USD 0.3750. The next major support is near the $0.350 level.
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 – $0.3960 and $0.3810.
Major resistance levels – $0.4000 and $0.4050.