Cardano price started a new increase above the $1.00 zone. ADA is consolidating and could target another increase above the USD 1.1150 level.
- The ADA price started a downward correction from the $1.1150 zone.
- The price is trading above $1.00 and the 100-hour simple moving average.
- A short-term ascending channel is forming with support at $1.075 on the hourly chart of the ADA/USD pair (Kraken data source).
- The pair could start rising again if it breaks the $1.1150 resistance zone.
Cardano price starts new increase
After forming a base above the USD 0.80 level, Cardano started a new rise, beating Bitcoin and Ethereum. ADA rose above the USD 0.90 and USD 1.00 levels.
The bulls even pushed the price above $1,120. A high was reached at $1.1156 and the price is now consolidating gains. There was a small decline below $1.1120, but the price remained above the 23.6% Fib retracement level of the upward move from the $0.8373 swing low to the $1.1156 high.
Cardano price is now trading above $1.00 and the 100-hour moving average. A short-term ascending channel is also forming with support at $1.075 on the hourly chart of the ADA/USD pair.
On the upside, the price could encounter resistance near the $1.10 zone. The first resistance is near $1.1120. The next major resistance could be $1.1150. If there is a close above the resistance at $1.1150, the price could start a strong rally. In the mentioned case, the price could rise towards the $1.20 region. Any further gains could require a move towards $1,250 in the near term.
Disadvantage correction in ADA?
If Cardano price fails to rise above the USD 1.1120 resistance level, it could trigger a fresh decline. The immediate downside support is near the $1,080 level.
The next major support is near the $1,050 level. A downside break below the $1.050 level could open the doors for a test of $0.975 or the 50% Fib retracement level of the upward move from the $0.8373 swing low to the $1.1156 high. The next major support is near the USD 0.950 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 1.0800 and USD 1.050.
Major resistance levels – $1.1120 and $1.1150.