Cardano price holds key support at $0.30. ADA could start a steady rise if there is a clear move above the $0.340 resistance.
- The ADA price is showing positive signs above the $0.30 level against the US Dollar.
- The price is trading above $0.300 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $0.295 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could gain bullish momentum if there is a close above the USD 0.340 resistance.
Cardano’s ADA Price Signals New Rise
This past week, Cardano price started a downside correction from the high of $0.379. The price traded below the $0.365 and $0.340 support levels to move into a near-term bearish zone similar to Bitcoin and Ethereum.
However, the bulls were active above the $0.30 level. A low is formed near $0.3001 and the price is now rising. There was a break above the $0.320 resistance. The price climbed above the 23.6% Fib retracement level of the downward move from the $0.379 swing high to the $0.300 low.
ADA price is now trading above $0.300 and the 100 simple moving average (4 hours). A major bullish trendline is also forming with support near $0.295 on the ADA/USD pair’s 4-hour chart.
On the upside, immediate resistance is near the $0.340 zone. It is close to the 50% Fib retracement level of the downward move from the $0.379 swing high to the $0.300 low.
Source: ADAUSD at TradingView.com
The first major resistance is forming near the $0.350 zone. The next key resistance could be at $0.365. If there is a close above the $0.365 resistance, the price could start a decent rise. In the said case, the price might rise towards the $0.380 resistance zone.
Are dips limited in ADA?
If the price of Cardano fails to break above the $0.340 resistance level, it could trigger another decline. Immediate support on the downside is near the $0.315 level.
The next major support is near the $0.30 level and trendline. A downside break below the $0.30 level could open the door for a sharp fresh decline towards $0.275. The next major support is near the $0.262 level.
Technical indicators
4am MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Main Support Levels – $0.315, $0.300 and $0.275.
Main resistance levels – $0.340, $0.350 and $0.365.