Cardano (ADA) is rising from the $0.350 support. ADA could rally if there is a clear move above the $0.388 and $0.395 resistance levels.
- ADA price is moving up above the $0.375 pivot level.
- The price is trading above $0.380 and the 100 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $0.370 on the 4-hour chart of the ADA/USD pair (data feed from Kraken).
- The pair could accelerate towards the $0.420 or even $0.450 level.
Cardano Price Rally Could Restart Soon
After a steady rise, Cardano saw a downward correction from the $0.4090 zone. There was a drop below the $0.395 and $0.388 support levels, such as Bitcoin and Ethereum.
However, the bulls were active near the $0.350 support zone. A low was formed near $0.3494 and the price is now rising. There was a break above the $0.365 and $0.375 resistance levels. The price rose above the 50% Fibonacci retracement level of the downward move from the high of $0.4090 to the low of $0.3494.
ADA is now trading above $0.375 and the 100 simple moving average (4-hours). There is also a key bullish trend line forming with support near $0.370 on the 4-hour chart of the ADA/USD pair.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.3880 area or the 61.8% Fibonacci retracement level of the downward move from the high $0.4090 to the low $0.3494. The first resistance is near $0.395. The next key resistance could be $0.400. If there is a close above the $0.400 resistance, the price could extend its rally. In the indicated case, the price could rise towards the $0.420 region. Any further gains could require a move towards $0.450.
Are drops in ADA supported?
If Cardano price fails to break above the $0.388 resistance level, it could start a downward correction. Immediate downside support is near the $0.370 level and the trend line.
The next major support is near the $0.365 level and the 100 hourly SMA. A downside break below the $0.365 level could open the doors to a test of $0.350. The next major support is near the $0.335 level.
Technical Indicators
4-hour MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Main support levels: $0.370, $0.365 and $0.350.
Main resistance levels: $0.388, $0.395 and $0.420.
