Cardano’s price climbed towards the $0.1150 resistance before correcting lower. Bitcoin price is in uptrend, and it seems like ADA price is likely to set up a break towards $0.1200.
- ADA started a downside correction after trading as high as $0.1134 against the US dollar.
- The price is still trading well above the $0.1000 support and the 100 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $0.1050 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
- The pair is likely to start a fresh rally if there is a clear break above $0.1100 and $0.1120.
Cardano (ADA) is Showing Positive Signs
In the past few days, cardano’s price followed a bullish path above the $0.0980 resistance. ADA price settled nicely above the $0.1000 pivot level and the 100 simple moving average (4-hours).
It opened the doors for more gains and the price rallied above the $0.1100 resistance. There also a spike above the $0.1120 level. A high was formed near $0.1134 before the price started a downside correction. It traded below the $0.1100 support level.
There was a break below the 23.6% Fib retracement level of the upward move from the $0.0883 low to $0.1134 high. However, the price remained well bid above the $0.1000 support and the 100 simple moving average (4-hours).
Source: ADAUSD on TradingView.com
The 50% Fib retracement level of the upward move from the $0.0883 low to $0.1134 high also acted as a support. It seems like there is a key bullish trend line forming with support near $0.1050 on the 4-hours chart of the ADA/USD pair.
The pair is trading well above the $0.1000 support and the 100 simple moving average (4-hours). On the upside, the $0.1100 level is a strong resistance. A clear break above the $0.1100 barrier and $0.1120 could open the doors for a steady increase in the coming sessions. The next key hurdle for the bulls is near the $0.1200 level.
Fresh Decline?
If cardano’s price fails to clear the $0.1100 and $0.1120 resistance levels, there is a risk of a fresh decline. An initial support is near the trend line at $0.1050.
The main support is now forming near the $0.1000 level and the 100 simple moving average (4-hours). A clear break below the $0.1000 support level may possibly push the price towards the $0.0880 support zone.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is struggling to gain pace in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is just above the 50 level.
Major Support Levels – $0.1050, $0.1000 and $0.0880.
Major Resistance Levels – $0.1100, $0.1120 and $0.1200.