Cardano (ADA) is attempting a fresh increase above the $0.4500 resistance zone. ADA could gain bullish momentum if it settles above the 100 SMA (H4).
- ADA price is slowly moving high above the $0.450 zone.
- The price is trading below $0.480 and the 100 simple moving average (4 hours).
- There was a break above a key bearish trend line with resistance at $0.4580 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could gain bullish momentum if there is a clear move above $0.470.
Cardano Price Attempts Fresh Increase
In the past few days, Cardano started a recovery wave from the $0.4180 zone, like Bitcoin and Ethereum. ADA price broke the $0.4350 and $0.4420 levels to move into a short-term bullish zone.
There was a move above the 23.6% Fib retracement level of the downward move from the $0.5227 swing high to the $0.4180 low. Besides, there was a break above a key bearish trend line with resistance at $0.4580 on the 4-hour chart of the ADA/USD pair.
Cardano is now trading below $0.480 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.4650 zone and the 100 simple moving average (4 hours).
The first resistance is near $0.470 or the 50% Fib retracement level of the downward move from the $0.5227 swing high to the $0.4180 low. The next key resistance might be $0.4980. If there is a close above the $0.4980 resistance, the price could start a strong rally.
Source: ADAUSD on TradingView.com
In the stated case, the price could rise toward the $0.5250 region. Any more gains might call for a move toward $0.5650.
Another Decline in ADA?
If Cardano’s price fails to climb above the $0.470 resistance level and the 100 simple moving average (4 hours), it could start another decline. Immediate support on the downside is near the $0.450 level.
The next major support is near the $0.4350 level. A downside break below the $0.4350 level could open the doors for a test of $0.4180. The next major support is near the $0.3880 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major Support Levels – $0.4500, $0.4350, and $0.4180.
Major Resistance Levels – $0.4700, $0.4980, and $0.5250.
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Author: Aayush Jindal
